The Main Difference Between Activity-Based Costing and Traditional Costing Systems

question 165

True/False

The main difference between activity-based costing and traditional costing systems is that activity-based costing uses a separate allocation base for each activity.

---

Definitions:

Isobutylbenzene

An organic compound made up of a benzene ring attached to an isobutyl group, used in the manufacture of other chemicals.

Benzene

A carcinogenic aromatic hydrocarbon with a ring of six carbon atoms, used as a starting material in the manufacture of many chemicals.

Organic Product

A molecule or compound produced from organic precursors, often through reactions involving carbon-based molecules.

Friedel-Crafts Acylation

A chemical reaction that introduces an acyl group into an aromatic ring, facilitated by a Lewis acid catalyst.