A Major Advantage of Activity-Based Costing (ABC) Is That It

question 21

True/False

A major advantage of activity-based costing (ABC) is that it reduces unit cost distortions arising from overhead allocations that often occur using traditional cost accounting systems.

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Definitions:

Chart Element

Components of a chart, such as axis titles, legends, and data series, which together form a complete graph.

Sizing Handles

Small graphical indicators around the border of a selected object that allow the user to adjust its size.

Legend

A key within charts or maps that explains the symbols, colors, or patterns used to represent variables.

Win/Loss Sparklines

Win/Loss Sparklines in spreadsheet applications represent data trends and outcomes (win/loss) visually in a compact, word-sized format.