Which of These Is Not a Benefit of Activity Based

question 1

Multiple Choice

Which of these is not a benefit of Activity Based Costing?

• A) Increased awareness of cause and effect relationships
• B) Identification of non-value-added activities
• C) Modifications to the accounting system
• D) All of the above are benefits. i.e. none of the items is not a benefit

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Definitions:

Proportion

A statement of the equality of two ratios.

Direct Labour

The cost of wages for employees who directly manufacture or produce goods and services.

Raw Materials

The basic materials from which a product is made, often referred to in the context of manufacturing and production industries.

Assemblers

Individuals or machines that put together components to create a finished product.