Activity-Based Costing (ABC) Differs from Other Costing Approaches in That

question 136

Multiple Choice

Activity-based costing (ABC) differs from other costing approaches in that it more accurately measures the cost of activities:

• A)Not proportional to the volume of outputs produced.
• B)Directly proportional to the volume of outputs produced.
• C)Inversely proportional to the volume of outputs produced.
• D)That are non-value adding.
• E)At a significantly lower cost in time and money.

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Definitions:

Contaminants

Any substance or agent that makes something impure or harmful, often found in the environment, food, or water.

CERCLA

Comprehensive Environmental Response, Compensation, and Liability Act; a federal law designed to clean up sites contaminated with hazardous substances.

Hazardous Waste

Waste material that can pose a threat to public health or the environment due to its toxic, corrosive, ignitable, or reactive properties.

Superfund

A program by the U.S. federal government aimed at financing the remediation of locations polluted with hazardous materials and substances.