Which One of the Following Statements About Activity-Based Costing (ABC)

question 12

Multiple Choice

Which one of the following statements about activity-based costing (ABC) is correct?

• A) takes into account the effects of activities that actually occur during the production process
• B) has been in use in advanced industrial economies for over a century
• C) is a relatively old-fashioned system that is gradually being replaced by new methods of absorption costing

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Definitions:

Smokestack Scrubbers

Pollution control devices installed in smokestacks to remove or neutralize harmful substances from exhaust gases.

Socially Optimal

A situation or outcome that is most beneficial for society as a whole, often considered in the context of economic efficiency.

Harmful Chemicals

Substances that have the potential to cause damage to living organisms or the environment through exposure, inhalation, ingestion, or skin absorption.

Technology Spillovers

The positive externality that occurs when technological advancements or innovations benefit firms or sectors beyond the inventor or innovator.