Firms Are Abandoning Activity Based Costing (ABC) Because

question 41

Multiple Choice

Firms are abandoning Activity Based Costing (ABC) because

• A) it does not facilitates the analysis of variances
• B) it is complex and time consuming
• C) it does not recognize the importance of direct labor as a component of total manufacturing cost
• D) the financial nature of the reports does not permit comparisons to be made among different types of products

---

Definitions:

Associate Degree Nurse

A nurse who has received an associate degree in nursing, qualifying them to take the licensing exam to become a registered nurse.

Diploma Graduate Nurse

A nurse who has obtained a diploma in nursing, usually from a hospital-based program, focusing on clinical skills and practical experience.

Baccalaureate Nurse

A registered nurse who has earned a bachelor's degree in nursing.

Preventive Care

Screening tests and drugs to prevent disease.