The Overhead Application Rate Is Lower When an Activity- Based-

question 102

Multiple Choice

The overhead application rate is lower when an activity- based- costing approach is used than when a traditional approach is used because:

• A) more costs are directly traced
• B) costs are spread over more value- chain activities
• C) nonvalue- added costs are eliminated
• D) less costs are incurred

---

Definitions:

Bronchoscopy

A diagnostic and therapeutic procedure that allows a visualization of the airways through a flexible or rigid tube.

Anesthetic Solution

A liquid preparation containing anesthetic agents used to induce loss of sensation and pain in a part of the body.

Gag Reflex

A natural, involuntary contraction of the back of the throat elicited by touching the soft palate, intended to prevent choking.

Ramsay Sedation Score

A scale used to assess and quantify the depth of sedation in patients, particularly in intensive care settings.