The Main Difference Between Activity-Based Costing and Traditional Costing Systems

question 165

True/False

The main difference between activity-based costing and traditional costing systems is that activity-based costing uses a separate allocation base for each activity.

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Definitions:

Absorption

The process by which substances are taken up into or across tissues, such as the absorption of nutrients by the intestines.

Amylase

An enzyme produced primarily by the pancreas and salivary glands that helps in the digestion of carbohydrates by breaking down starch into sugar.

Anorexia

An eating disorder characterized by an obsessive fear of gaining weight and a refusal to maintain a healthy body weight.

Cholecystectomy

A surgical procedure to remove the gallbladder.