Activity-Based Costing (ABC)can Eliminate Cost Distortions Because ABC

question 27

Multiple Choice

Activity-based costing (ABC) can eliminate cost distortions because ABC:

• A)develops cost drivers that have a cause-and-effect relationship with the activities performed
• B)establishes multiple cost pools
• C)eliminates product variations
• D)recognizes interactions between different departments in assigning support costs

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Definitions:

Overgrazing

The depletion of vegetation due to livestock grazing at a higher density than the land can sustainably support, leading to soil erosion and desertification.

Aquaculture

The cultivation of aquatic organisms such as fish, shellfish, and seaweeds in controlled environments, intended for consumption or other human use.

Environmental Impacts

The effects of human activities or natural processes on the environment, including air and water quality, biodiversity, and climate.

Aquaculture

The cultivation of aquatic organisms such as fish, crustaceans, mollusks, and aquatic plants for food or other purposes.