When Using Activity-Based Costing All of the Following Are True

question 36

Multiple Choice

When using activity-based costing all of the following are true EXCEPT that:

• A)all cost drivers should be output unit-level cost drivers.
• B)there are a great number and variety of cost drivers and cost pools.
• C)the more cost pools,the greater the chance of estimation error.
• D)industrial engineering,conference,and regression analysis can be used to estimate slope coefficients.

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Definitions:

Environmental Protection

The practice of safeguarding the environment by minimizing pollution, conserving natural resources, and promoting biodiversity through regulations and initiatives.

Pollution Permits

Licenses that allow the holder to emit a certain amount of pollution; these can be traded in a market to incentivize the reduction of overall pollution levels.

Pollution Elimination

The process or practices aimed at reducing, controlling, or completely removing pollutants from the environment.

Pollution Cost

The economic impacts associated with pollution, including healthcare costs, environmental degradation, and loss of biodiversity.