Consider the Following Statements About Activity-Based Costing and Its Use

question 68

Multiple Choice

Consider the following statements about activity-based costing and its use in pricing:
I. A company that uses target costing generally would have little need for activity-based costing.
II. Companies that use cost-plus pricing methods would have little need for activity-based costing.
III. The use of activity-based costing will often lead to better pricing decisions by managers.
Which of the above statements is (are) true?

• A) I only.
• B) II only.
• C) III only.
• D) I and III.
• E) I, II, and III.

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Definitions:

ACh

Acetylcholine, a neurotransmitter involved in muscle activation, memory, and learning.

Flaccid Paralysis

A medical condition characterized by weakness or paralysis and reduced muscle tone without an obvious cause.

Acetylcholinesterase

An enzyme that breaks down the neurotransmitter acetylcholine, terminating its action at the neural synapse.

Action Potentials

Rapid and temporary changes in the electrical membrane potential of a cell, allowing for the transmission of signals along neurons.