Activity-Based Costing Is Likely to Be Most Beneficial to Firms

question 18

Multiple Choice

Activity-based costing is likely to be most beneficial to firms with which characteristics?

• A)Has a multi-product range that use resources differently.
• B)Manufactures a single product.
• C)Has a multi-product range that use similar processes.
• D)Is set-up as a public company.

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Definitions:

Capital Accounts

Part of a nation's balance of payments that records all transactions involving the purchase and sale of assets.

Current Accounts

A component of a country’s balance of payments that includes the balance of trade, net primary income, and net earnings on foreign investments.

Balance Of Trade

The difference between the value of a country's exports and imports over a certain period, indicating a trade surplus or deficit.

Capital Expansion

refers to the growth of a company's capital assets through investments in new facilities, equipment, or the acquisition of other firms.