Activity-Based Costing Systems

question 44

Multiple Choice

Activity-based costing systems:

• A) use a single, volume-based cost driver.
• B) assign overhead to products based on the products' relative usage of direct labor.
• C) often reveal products that were under- or over-costed by traditional costing systems.
• D) typically use fewer cost drivers than more traditional costing systems.
• E) have a tendency to distort product costs.

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Definitions:

Phi Phenomenon

The optical illusion of perceiving a sequence of still images shown in rapid succession as continuous motion.

Animated Neon Sign

A luminous, vibrant sign made from neon or LED lights, often used for advertising, which includes moving elements or patterns to attract attention.

Relative Motion

The calculation of the motion of an object with respect to some other moving or stationary object.

Linear Perspective

A technique in visual art to create an illusion of depth on a flat surface, where parallel lines converge at a vanishing point.