Activity-Based Costing Information

question 114

Multiple Choice

Activity-based costing information

• A)should be used when services place similar demands on resources.
• B)usually results in peanut butter costing.
• C)will yield inaccurate cost numbers when products are similar.
• D)helps management reduce costs along the value chain.
• E)is best used when overhead costs are minimal.

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Definitions:

Foster Competition

means to encourage or promote a marketplace environment where businesses vie against one another, aiming to improve quality, innovation, and consumer choice.

Antirust Legislation

Laws and regulations designed to promote fair competition for the benefit of consumers by preventing monopolies, cartels, and other forms of market dominance that can lead to price fixing and reduced innovation.

Market Power

The ability of a company or entity to control prices or exclude competition within a particular market.

Price-Fixing Agreement

An arrangement between competitors to set prices at a certain level, rather than allowing them to be determined by natural market forces, often considered illegal.