If Activity-Based Costing Is Implemented in an Organization Without Any

question 100

Multiple Choice

If activity-based costing is implemented in an organization without any other changes being implemented,total overhead manufacturing costs will

• A)be reduced because of the elimination of non-value-added activities.
• B)be reduced because organizational costs will not be assigned to products or services.
• C)be increased because of the need for additional people to gather information on cost drivers and cost pools.
• D)remain constant and simply be spread over products using different cost drivers.

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Definitions:

Brightness Constancy

The perception that the brightness of an object remains the same under varying conditions of illumination.

Auditory Neurons

Nerve cells that are responsible for processing and transmitting sound information from the ear to the brain.

Temporal Lobe

A region of the cerebral cortex responsible for processing auditory information and encoding memory.

Parietal Lobe

The parietal lobe is a region of the brain associated with processing sensory information related to touch, pressure, temperature, and pain.