An Advantage of Activity-Based Costing Compared to Traditional Costing Is

question 45

Multiple Choice

An advantage of activity-based costing compared to traditional costing is:

• 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:

Bulimia Nervosa

An eating disorder marked by a cycle of binge eating followed by behaviors such as vomiting to prevent weight gain.

Compensatory Behavior

A mechanism aimed at counterbalancing or offsetting a perceived deficit or problem, often seen in eating disorders.

Forced Vomiting

The act of deliberately inducing vomiting, often practiced as a harmful way to control weight or after binge eating.

Bulimia Nervosa

An eating disorder characterized by cycles of binge eating followed by purging, through methods such as vomiting or excessive use of laxatives, to prevent weight gain.