Activity-Based Cost Systems Create

question 145

Multiple Choice

Activity-based cost systems create

• A)one large cost pool.
• B)homogeneous activity-related cost pools.
• C)activity-cost pools with a broad focus.
• D)activity-cost pools containing many direct costs.
• E)heterogenous activity-related cost pools.

---

Definitions:

Relationship Between Variables

Refers to how variables are associated with each other, which can be positive, negative, or non-existent.

Absolute Value

The non-negative value of a number without regard to its sign, representing its distance from zero on the number line.

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases.

Indirect

Referring to a relationship or communication where the effect or message is not directly conveyed, but rather inferred through other means.