Though Ripley Typically Thinks of Himself as an A/B Student

question 93

Multiple Choice

Though Ripley typically thinks of himself as an A/B student, when he receives a C in British literature he's thrilled. He tells his sister that he was confused throughout the class and expected to fail it completely. Ripley feels better than he might have had he received the grade in another class due to

• A)the fact that British literature is a notoriously difficult subject.
• B)his belief system about the subject and the grade.
• C)the fact that a C in one class won't destroy his grade point average.
• D)his sister's support.
• E)repression.

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Definitions:

Activity-Based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption of each.

Overhead Rates

The method used to allocate indirect costs, such as utilities or rent, to products or services based on predetermined criteria, often as a rate per unit of activity.

Activity Cost Drivers

Factors that influence the costs of business activities, often used in activity-based costing to allocate costs more accurately.

ABC Costing System

Activity Based Costing system; a method of cost accounting that identifies and assigns costs to specific activities involved in the production process to better understand overhead costs.