Which of the Following Is NOT a Characterization of Activity-Based

question 91

Multiple Choice

Which of the following is NOT a characterization of activity-based costing?

• A)identification of only variable costs
• B)a focus on both operating and strategic decisions
• C)identifying all resources used by activities regardless of how individual costs behave in the short run
• D)using the cost hierarchy to allocate costs to products
• E)identification of all costs used by activities

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Definitions:

Electric Company

A business entity that generates, transmits, and/or distributes electricity to consumers and businesses.

Payoff Table

A matrix that shows the outcome (or payoff) of different strategies or decisions, given different states of nature or scenarios.

Expected Opportunity Loss

A measure of the average loss incurred from not choosing the best decision option under uncertainty.

Food Market

A physical or virtual marketplace where food and food products are traded between producers, wholesalers, and consumers.