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

question 122

Multiple Choice

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

• A)It does not affect cost control.
• B)Indirect cost allocation bases are unlikely to be cost drivers.
• C)It provides less information than traditional cost systems.
• D)It provides similar results to traditional costing when one activity creates a substantial amount of total cost.
• E)It provides similar results to traditional costing when different products use resources from different activities in different proportions.

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Definitions:

Microsystem Level

The closest layer of environment in Bronfenbrenner's ecological systems theory, consisting of settings where an individual directly interacts, like family or school.

Internal

Pertaining to or existing within an entity, such as an organization, individual, or system, often as opposed to external factors or influences.

External

Originating from or situated on the outside of an entity, not inherent or contained within it.

Stable

Characterized by consistency, reliability, and resistance to change or disorder.