Which of the Following Statements Is Typically Not True About

question 33

Multiple Choice

Which of the following statements is typically not true about activity based costing?

• A) Improves the tracing of costs to the product or service that consumed the cost
• B) Helps to identify costs that were arbitrarily allocated in the past using a volume based driver, such as direct labor
• C) Identifies the true (or more logical) drivers of indirect costs
• D) ABC is used by the majority of major corporations throughout the world
• E) Examples of cost drivers used in ABC include: number of orders, length of setups, engineering changes

Distinguish between automatic stabilizers and discretionary fiscal policies.

Recognize the effects of fiscal policy on recession and inflation.

Understand the implications of government expenditures and tax receipts on public debt.

Identify the objectives of stabilization policies.

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Definitions:

Millions Of Dollars

A monetary unit used to describe large sums of money, typically used in financial reports, budgets, or to denote the scale of a project or value of an entity.

Profitability

A financial metric that measures the degree to which a company or business activity makes more money than it spends, indicating financial success.

Marketing Costs

Expenses related to promoting and selling products or services, including advertising, public relations, and promotional materials.

Brand Equity

The value and strength of a brand that determines its worth, influenced by consumer perception, recognition, and loyalty.