What Is an Advantage of Activity-Based Costing Compared to Traditional

question 52

Multiple Choice

What is an advantage of activity-based costing compared to traditional costing?

• A)it is cheaper to implement.
• B)overhead allocation is objective rather than arbitrary.
• C)linking overheads to cost drivers results in a fairer and more accurate costing.
• D)all of the above are advantages.

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Definitions:

Firewall

A software program or hardware device designed to prevent unauthorized access to computers or networks.

Media Access Control (MAC)

A unique identifier assigned to network interfaces for communications on the physical network segment.

Physical Address

A unique identifier assigned to each network interface on a network. It's also known as a MAC (Media Access Control) address in the context of networking.

Network Adapter

A device that enables the computer (or peripheral) to communicate with the network using a common data communication language, or protocol.