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:

Axon

A nerve fiber that conducts electrical impulses away from the neuron's cell body, facilitating communication with other neurons or muscles.

Myelin Sheath

A fatty layer that surrounds nerve fibers, aiding in the rapid transmission of electrical signals.

Neural Messages

Neural messages are electrochemical signals transmitted along neurons, enabling communication within the nervous system.

Polarization

A process in which differences between opinions, beliefs, or interests become more extreme, leading to division within groups or societies.