Managers Have Greater Confidence in the Accuracy of Costs of Products

question 119

Multiple Choice

Managers have greater confidence in the accuracy of costs of products and services reported by activity- based systems because:

• A) activity- based systems are more complex
• B) activity- based systems are more expensive
• C) activity- based systems classify more costs as direct
• D) All of these answers are correct.

---

Definitions:

Simple Interest

Interest calculated on the principal amount of a loan or deposit, without compounding over time.

Savings Account

A deposit account held at a bank that provides interest on the funds deposited.

Lump Sum

An individual disbursement occurring at a certain point, in contrast to periodic payments carried out sequentially.

Proceeds

The amount of money received from a sale or transaction.