Which of the Following Statements About Activity-Based Costing Is True

question 117

Multiple Choice

Which of the following statements about activity-based costing is true?

• A) It does not affect cost control.
• B) Indirect cost allocation bases are unlikely to be cost drivers.
• C) It provides less information than traditional cost systems.
• D) It provides similar results to traditional costing when one activity creates a substantial amount of total cost.
• E) It provides similar results to traditional costing when different products use resources from different activities in different proportions.

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Definitions:

Pelvis

The lower part of the torso in human and vertebrates, comprising hip bones surrounding and protecting organs in the abdominopelvic cavity.

Foramen Magnum

The large opening at the base of the skull through which the spinal cord passes to connect with the brain.

Bipedalism

The ability to walk on two legs, a characteristic feature of humans and our ancestors that allows for a range of motion and energy efficiency.

Hominids

A family of primates that includes humans, their ancestors, and other extinct related species, characterized by bipedalism, large brains, and complex behavior.