Which of the Following Statements Is True

question 34

Multiple Choice

Which of the following statements is true?

• A)Many traditional costing systems can distort product costs and profitability.
• B)Traditional costing systems tend to be more costly than activity-based costing systems.
• C)Activity-based costing systems tend to combine various costs into a single cost pool.
• D)Activity-based costing systems tend to use fewer cost pools than does a traditional costing system.

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Definitions:

Marginal Cost

The financial increase required to produce one more unit of a good or service.

Weekly Wage

The total amount of money or compensation paid to an employee by an employer for work performed over the course of a week.

University

An educational institution designed for instruction, examination, or both, of students in many branches of advanced learning.

Monopolistic Distributor

An intermediary that possesses the exclusive power to distribute a product or service within a particular market, influencing prices and availability.