In Comparison with a System That Uses a Single Volume-Based

question 49

Multiple Choice

In comparison with a system that uses a single volume-based cost driver, an activity-based costing system is preferred when a company has:

• A)a small proportion of non-unit-level activities.
• B)product line diversity or a large proportion of non-unit-level activities.
• C)minimal product line diversity and a small proportion of non-unit-level activities.
• D)existing variances from budgeted amounts.
• E)uses a single overhead pool.

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Definitions:

Intuition

The ability to understand or know something immediately, without the need for conscious reasoning.

Learned Patterns

Behaviors, attitudes, or skills acquired through experience or education rather than being innate.

Consciousness

The state of being awake and aware of one's surroundings, thoughts, and experiences.

Incubation

A process or period of development and preparation, often used in reference to ideas, projects, or entrepreneurial ventures.