Which of the Following Statements About Activity-Based Costing Is NOT

question 28

Multiple Choice

Which of the following statements about activity-based costing is NOT true?

• A)ABC is useful for allocating marketing and distribution costs.
• B)ABC is more likely to result in major differences from traditional costing systems if the firm manufactures only one product rather than multiple products.
• C)ABC seeks to distinguish batch-related, product-sustaining, and business-sustaining costs, especially when they are not proportionate to one another.
• D)ABC differs from traditional costing systems in that products are not cross-subsidized.

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Definitions:

Nuclear Family

A basic social unit consisting of parents and their children, considered as a group, whether dwelling together or not.

Culturally Accepted

Practices, behaviors, or norms that are widely recognized and endorsed within a particular society or community.

Stereotypical Gender Traits

Oversimplified and widely held beliefs about the characteristics, attributes, and behaviors expected of males and females, based on societal norms.

Socialization

The process by which individuals learn and internalize the norms, values, behaviors, and social skills appropriate to their society.