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:

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded by consumers in a given time period.

Supply Curve

A supply curve graphically represents the relationship between the price of a good and the quantity of the good that suppliers are willing to sell, typically showing a direct relationship where higher prices incentivize higher supply.

Wage Rate

The amount paid to an employee per unit of time (e.g., per hour or year) for their labor.

Production Function

A mathematical model in economics that describes the relationship between inputs and the maximum output of goods or services produced.