Consider the Following Statements About Activity-Based Costing and Its Use

question 68

Multiple Choice

Consider the following statements about activity-based costing and its use in pricing:
I. A company that uses target costing generally would have little need for activity-based costing.
II. Companies that use cost-plus pricing methods would have little need for activity-based costing.
III. The use of activity-based costing will often lead to better pricing decisions by managers.
Which of the above statements is (are) true?

• A) I only.
• B) II only.
• C) III only.
• D) I and III.
• E) I, II, and III.

---

Definitions:

Two-Way Engagement

A form of communication where both parties, such as a company and its customers, actively participate in dialogue and feedback.

Priority Audiences

Specific groups of people identified as the most important or relevant for a particular message or campaign.

Nongovernmental Organization

An independent organization not associated with governments, often focused on addressing social, environmental, and humanitarian issues.

Humanitarian Functions

Activities or roles aimed at promoting human welfare and social reforms, often associated with relief and development organizations.