All of the Following Statements Regarding Activity-Based Costing Systems Are

question 56

Multiple Choice

All of the following statements regarding activity-based costing systems are true except they:

• A)Can provide more accurate product costs.
• B)Identify more costs as indirect costs than do traditional volume-based systems.
• C)Are likely to be more time-consuming than volume-based systems.
• D)Are used in both manufacturing and non-manufacturing companies.
• E)Are likely to have more overhead rates than volume-based systems.

---

Definitions:

Push Model

A distribution method where products are pushed through the supply chain, from production to final consumers, without direct consumer demand driving it.

Pull Model

A supply chain management strategy where the demand for product initiates production and distribution, in contrast to the traditional push model driven by forecasted demand.

Open-Source CRM

A customer relationship management system whose source code is available freely for use, modification, and distribution.

On-Premise

Refers to software and technology that is installed and runs on the premises of the person or organization using the software, rather than at a remote facility.