Which of the Following Is Not True About the Benefits

question 60

Multiple Choice

Which of the following is not true about the benefits and costs of activity-based costing systems?

• A)It requires managers to estimate the cost of activity pools.
• B)It requires few calculations to determine costs of products and services.
• C)It requires many calculations to determine costs of products and services.
• D)The activity cost rates need to be updated frequently.
• E)The managers can misidentify the time spent implementing the system.

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Definitions:

Fund

A pool of money set aside for a specific purpose or managed to generate financial returns.

Property Taxes

Taxes charged by local governments on real estate and sometimes personal property, based on the assessed value of the property.

Special Assessment

A charge that local governments impose on property owners to fund specific projects, such as infrastructure improvements, which directly benefit the property owners.

Derived Tax Revenues

Revenues obtained from taxes that are not directly levied on income or profits but are instead based on the use or consumption of goods and services.