Which of the Following Statements Is True of Activity-Based Costing

question 214

Multiple Choice

Which of the following statements is true of activity-based costing?

• A) ABC ignores the allocation of marketing costs.
• B) ABC classifies some indirect costs as direct costs.
• C) ABC is more likely to result in big differences from a traditional costing system if the business makes only one product rather than multiple products.
• D) Activities are the cost objects of the second stage of ABC.

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Definitions:

Instance

A specific realization or example of an abstract concept, such as an occurrence of a class in programming or a particular event.

Relational Table

A structured format to store data in rows and columns, allowing for the relationship between different types of data.

Big Data

Large and complex data sets which are difficult to process using traditional data processing applications.

Traditional DBMS

Database Management Systems that employ classic models such as hierarchical, network, and relational databases to organize and manage data efficiently.