Which of the Following Statements About Activity-Based Costing Is NOT

question 226

Multiple Choice

Which of the following statements about activity-based costing is NOT true?

• A)Activity-based costing is useful for allocating marketing and distribution costs.
• B)Activity-based costing differs from traditional costing systems in that products are not cross-subsidised.
• C)Activity-based costing is more likely to result in major differences from traditional costing systems if the firm manufactures only one product rather than multiple products.
• D)Activity-based costing seeks to distinguish batch-level,product-sustaining and facility-sustaining costs,especially when they are not proportionate to one another.

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Definitions:

Situational Cause

External factors or circumstances that influence an individual's behavior or outcomes.

Standard Procedures

Established methods or protocols that prescribe how tasks should be performed, ensuring consistency, efficiency, and safety.

Outsiders

Individuals or groups that are not part of a specific social system, organization, or community, often viewed as not belonging to the dominant or central group.

Leader's Term

The period during which an individual holds the leadership position in an organization or team.