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:

Jockeying

The strategic maneuvering or positioning of oneself or one's resources to gain advantage or leverage, often used in competitive contexts.

Throughput

The rate at which a system or process produces or processes material or data over a particular period of time.

Efficiency Evaluation

The process of assessing how effectively and economically resources are utilized to achieve desired outcomes.

Service Operation

The activities involved in delivering services to customers, focusing on effectively and efficiently meeting service requirements and ensuring customer satisfaction.