Which of the Following Statements Is TRUE Regarding Activity-Based Costing

question 80

Multiple Choice

Which of the following statements is TRUE regarding activity-based costing systems?

• 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 can be used in manufacturing firms only.
• D)ABC costing systems have multiple indirect cost allocation rates for each activity.
• E)ABC systems provide a greater level of detail to understand how an organization uses its common inputs differently for distinct products.

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Definitions:

BIOS

Basic Input/Output System, firmware interface that initializes computer hardware during booting.

ROM Chip

A type of non-volatile storage that permanently stores instructions for hardware initialization. The data on it cannot be modified or can only be modified slowly or with difficulty.

Supercomputers

High-performance computing systems designed for complex computational tasks, often used in scientific and engineering calculations.

UNIX

An operating system originally conceived in 1969 by Ken Thompson and Dennis Ritchie of AT&T’s Bell Labs. In 1974, the UNIX code was rewritten in the standard programming language C. Today there are various commercial versions of UNIX.