For Which One of the Following Reasons Is the Calculation

question 109

Multiple Choice

For which one of the following reasons is the calculation of overhead variances in conjunction with an activity-based cost (ABC) system desirable from the standpoint of management?

• A) The resulting cost-management system is currently required by generally accepted accounting principles (GAAP).
• B) Such a system would be consistent with the goal of managing activities rather than cost.
• C) Such a system is likely to be less costly to design and implement.
• D) Far fewer variances would likely be expected under such a system.
• E) Conventional systems, though appropriate for a manufacturing setting, are not applicable to the service sector.

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Definitions:

Inhibit Translation

The process of hindering the synthesis of proteins by preventing the translation of messenger RNA (mRNA) on ribosomes.

Mobile DNA Element

Segments of DNA that can move or copy themselves to new positions within the genome, playing roles in genetic diversity and evolution.

Germ Cells

Specialized cells involved in reproduction, giving rise to gametes, such as sperm or eggs.

Double-Stranded RNA

Double-stranded RNA is a molecular structure that consists of two complementary strands of RNA molecules, often playing a role in gene regulation and antiviral defense mechanisms.