Regarding Activity-Based Costing Systems, Which of the Following Statements Is

question 95

Multiple Choice

Regarding activity-based costing systems, which of the following statements is true?

• A)ABC systems accumulate overhead costs by departments.
• B)ABC costing systems are less complex and, therefore, less costly than traditional systems.
• C)ABC costing systems have separate indirect cost allocation rates for each activity.
• D)ABC costing systems can be used in manufacturing firms only.

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Definitions:

Activism

The practice of campaigning or taking action to bring about political or social change.

Random Sampling

A method of sampling where every element of the population has an equal chance of being selected.

Luck Of The Draw

A phrase referring to the outcome being determined by chance rather than any controllable factors.

Probability Sampling

A sampling technique in which every member of the population has a known, non-zero chance of being selected.