Which of the Following Types of Companies Would Be Most

question 36

Multiple Choice

Which of the following types of companies would be most likely to benefit from activity-based costing?

• A) Companies with a low potential for cost distortions
• B) Companies that have a large proportion of unit-level costs
• C) Companies that have a relatively high proportion of overhead compared to direct materials and direct labour
• D) None of these

---

Definitions:

NX

Stands for Net Exports, which is the difference between a country's total value of exports and total value of imports.

Equations

Mathematical statements that assert the equality of two expressions, often used in modeling relationships in various sciences.

Real Return

The return on an investment after adjusting for inflation, reflecting the actual purchasing power of the amount returned.

Net Capital Outflow

The skew in investment patterns between domestic entities investing abroad and foreign entities investing domestically.