Activity-Based Costing (ABC)can Eliminate Cost Distortions Because ABC

question 109

Multiple Choice

Activity-based costing (ABC) can eliminate cost distortions because ABC:

• A)develops cost drivers that directly link the activities performed to the products manufactured.
• B)establishes multiple cost pools.
• C)employs capacity-related cost drivers.
• D)recognizes interactions between different departments in assigning overhead costs.

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Definitions:

Insight Therapies

Psychological treatments that involve verbal interactions intended to enhance clients' self-knowledge and thus promote healthful changes in personality and behavior.

Biologically Controlled Responses

Processes or reactions in organisms that are naturally regulated by biological factors rather than environmental influences.

Insight Therapies

Psychological treatments that emphasize increasing a client's awareness of underlying motives and defenses as a way to change behaviors and emotions.