How Does Direct Cost Tracing Improve Cost Accuracy

question 89

Multiple Choice

How does direct cost tracing improve cost accuracy?

• A)It identifies the cause-and-effect relationship between direct costs and indirect costs.
• B)It identifies the cause-and-effect relationship between activities and non-activities.
• C)It reclassifies costs or costs pools that vary with the quantity of a single activity cost driver as direct.
• D)It makes no assumptions about the cause-and-effect relationship between direct costs and activities.
• E)Because with a greater number of cost pools, it does not have to be concerned with the overhead costs used by different products.

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Definitions:

Share Information

The act of making data available to others, often through networked computers or storage systems, to facilitate communication or collaboration.

Default Gateway

The IP address of a Layer 3 device, such as a router, that is directly connected to its immediate network. It tells a device on its network where to send a packet destined for a remote network.

IP Address

A type of network adapter address used when multiple networks are linked. Known as a Layer 3 address, in IPv4 it is a 32-bit binary number with groups of 8 bits separated by a dot. This numbering scheme is also known as dotted-decimal notation. Each 8-bit group represents numbers from 0 to 255. An example of an IPv4 IP address is 113.19.12.102. Also see IPv4 and IPv6.

Network Number

The portion of an IP address that represents which network the computer is on.