The Main Difference Between Activity-Based Costing and Traditional Costing Systems

question 33

True/False

The main difference between activity-based costing and traditional costing systems is that activity-based
costing uses a separate allocation rate for each activity.

Know that sunk costs are irrelevant to future decision-making.

Recognize the relevance of out-of-pocket costs for current and future decisions.

Identify the importance of opportunity cost in decision-making.

Understand the role of incremental revenue in evaluating various courses of action.

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Definitions:

Dissension

Disagreement that leads to discord within a group, often disrupting unity and causing conflicts among members or factions.

Sharecropping

An agricultural system where a landowner allows a tenant to use the land in return for a share of the crops produced on their portion of land.

Juneteenth

An annual holiday commemorating the June 19, 1865, announcement of the abolition of slavery in Texas, and more broadly the emancipation of enslaved African Americans throughout the Confederate South.

Ku Klux Klan

A white supremacist hate group in the United States known for its racist, anti-immigrant, anti-Catholic, and anti-Semitic beliefs and acts of violence.