Which of the Following Statements Does Not Represent the Logic

question 112

Multiple Choice

Which of the following statements does not represent the logic of an ABC system?

• A)Activity cost allocation bases are the activity cost drivers of costs in the activity cost pools.
• B)A strong cause-and-effect relationship between overhead costs and the cost allocation base is essential.
• C)The requirement to measure cost allocation bases of different activities used by different products is essential.
• D)The overhead used by different products is not important, as it is a fixed cost.
• E)A greater level of detailed information concerning costs will help organizations be more efficient.

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Definitions:

Invertebrates

Animals that lack a vertebral column, or backbone, including species such as insects, arachnids, mollusks, and crustaceans.

Statoliths

Granules of loose sand or calcium carbonate found in statocysts.

Otoliths

Small calcium carbonate crystals in the saccule and utricle of the inner ear; sense gravity and are important in static equilibrium.

Stereocilia

Hairlike projections of hair cells; microvilli that contain actin filaments.