Which of the Following Is Not Normally Associated with Activity-Based

question 97

Multiple Choice

Which of the following is not normally associated with activity-based costing?

• A)Activity cost pools.
• B)Multiple cost drivers.
• C)Reduction of non-value-adding costs.
• D)High direct labor costs relative to manufacturing overhead costs.
• E)Improved decision-making and pricing.

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Definitions:

Lease Contract

is an agreement wherein one party allows another to use an asset, such as property or equipment, for a specified period in exchange for payment.

Banker

A professional in the banking industry who deals with the management, operation, and provision of banking services to consumers and businesses.

Contra Asset Account

This is an account used in financial accounting to offset the balance of a related asset account, increasing the overall accuracy of the company's financial statement.

Accumulated Depreciation

The sum of all depreciation expenses allocated for a physical asset from the time it was first utilized.