What Are Three Advantages of Activity-Based Costing Over Traditional Volume-Based

question 209

Multiple Choice

What are three advantages of activity-based costing over traditional volume-based allocation methods?

• A)Ease of use,more accurate product costing,and more effective cost control.
• B)Fewer allocation bases,ease of use,and a direct correlation to production volume.
• C)More accurate product costing,more effective cost control,and better focus on the relevant factors for decision making.
• D)More accurate product costing,fewer cost objects,and a direct correlation to production volume.
• E)More accurate product costing,ease of use,less costly to implement.

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Definitions:

Common Law Rule

A principle or rule established in previous legal cases that is either binding on or persuasive for a court or other tribunal when deciding subsequent cases with similar issues or facts.

Perfect Tender Rule

A legal principle that requires the delivery of goods to be exactly as specified in the contract without any deviations or defects.

Conforming Goods

Products that meet the specifications and standards outlined in a purchase contract.

Conforming Goods

Goods that meet the specifications and terms as stated in a contract of sale.