Which of the Following Is True for Activity-Based Costing (ABC)

question 70

Multiple Choice

Which of the following is True for activity-based costing (ABC) ?

• A) ABC considers the real costs associated with each product.
• B) With ABC, the company can estimate all costs coming from the customer, less revenue.
• C) The tools of ABC can be used to conduct customer profitability analysis.
• D) It identifies the costs of products and services based on the revenue they generate.
• E) ABC allocates indirect costs in proportion to direct costs.

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Definitions:

Other Models

A term that refers to alternative theories, frameworks, or systems used to explain or understand phenomena, distinct from the most widely acknowledged or mainstream models.

Neuroticism Dimension

An individual's disposition distinguished by susceptibility to nervousness, fright, whims in temperament, uneasiness, longing for what others have, irritability, resentment, and isolation.

Big Five

A model describing human personality as comprising five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Core Personality Dimensions

Fundamental attributes that describe an individual’s personality, often considered stable and encompassing a range of behaviors.