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

question 95

Multiple Choice

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

• A)ABC systems accumulate overhead costs by departments.
• B)ABC costing systems are less complex and,therefore,less costly than traditional systems.
• C)ABC costing systems can be used in manufacturing firms only.
• D)ABC costing systems have separate indirect cost allocation rates for each activity.

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Definitions:

ATP

ATP, or adenosine triphosphate, is a molecule that transports chemical energy within cells for metabolism.

Endocrine Glands

Glands of the endocrine system that secrete their products, hormones, directly into the blood rather than through a duct.

Exocrine Glands

Glands that secrete their products into ducts that lead directly to the external environment.

Neuron Cells

Specialized cells of the nervous system that transmit electrical and chemical signals throughout the body, facilitating communication between the brain and other parts.