What Is an Advantage of Activity-Based Costing Compared to Traditional

question 40

Multiple Choice

What is an advantage of activity-based costing compared to traditional costing?

• A)It is cheaper to implement.
• B)Overhead allocation is objective rather than arbitrary.
• C)Linking overheads to cost drivers results in a fairer and more accurate costing.
• D)All of the above are advantages.

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Definitions:

Workforce Reduction

The process of decreasing the number of employees in an organization through layoffs, attrition, or other methods, often for cost-cutting measures.

Layoffs

The process of dismissing staff members, frequently because of financial declines, changes in the organizational structure, or efforts to reduce expenses.

Labour Force Participation

The proportion of the working-age population that is engaged in or seeking employment.

Workforce

The collective group of employees or labor force of an organization or economy.