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:

Forecast Including Trend

A predictive analysis that accounts for historical data and identifies future patterns, trends, and likely outcomes.

Smoothing Constants

Parameters used in exponential smoothing methods for forecasting that determine the weight given to the most recent observation.

Actual Values

The real, measured values obtained from data collection as opposed to predicted or estimated figures.

Unusual Events

Occurrences that deviate significantly from the norm, which can impact operations, finances, or safety in various contexts.