In the Activity Identification Stage of Implementing an Activity-Based Costing

question 69

Multiple Choice

In the activity identification stage of implementing an activity-based costing system,the greater the level of detail

• A)the less likely the company will be to have a net loss.
• B)the greater the chance of misclassifying some costs and activities
• C)the less likely to misclassify some costs and activities
• D)the less likely the company will be to break-even.

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Definitions:

Shareholder

An individual or entity that owns one or more shares of stock in a corporation, giving them certain rights and interests in the company.

Strict Liability

A legal doctrine that holds a party responsible for their actions without the need to prove fault or negligence.

Vicarious Liability

Vicarious Liability is a legal principle that holds one party responsible for the actions of another party, under certain conditions, such as an employer being liable for the actions of an employee.

Truck Driver

A professional operator of a truck or large vehicle, responsible for transporting goods and materials from one location to another.