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:

Selective Comprehension

The process by which individuals interpret information based on their existing beliefs, attitudes, or desires, often leading to misunderstanding or distortion of messages.

Stimulus Discrimination

The ability to distinguish between different stimuli, particularly in learning and behavioral contexts.

Selective Retention

The process by which individuals remember only the information that supports their beliefs or opinions, ignoring any contrary evidence.

Selective Analysis

A method of analyzing data or information where only certain aspects or variables are considered, often to support a specific hypothesis or outcome.