The Activity-Based Costing System

question 47

Multiple Choice

The activity-based costing system

• A)is more appropriate method of cost accounting for rigid hierarchical organizations.
• B)effectively departmentalizes an organization based on its core functions such as human resources, purchasing, and maintenance.
• C)provides a more accurate picture of how costs should be charged to products and services.
• D)assumes that organizations are bureaucratic "machines" that can be separated into component functions.
• E)fails to allocate costs across business processes and is less effective than traditional methods of cost accounting.

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Definitions:

Renounced War

The formal act of declaring the rejection or abandonment of the use of war as a means to resolve disputes or achieve objectives.

National Policy

A set of decisions and actions taken by a government concerning internal and external affairs to guide the nation's goals and achieve desired outcomes.

Repaying Debts

The process of returning borrowed money to the lender, usually under agreed-upon terms and conditions.

Reparations Payments

Financial compensation paid to individuals or communities who have suffered injustices or harm, often related to war damages or historical wrongs like slavery and colonization.