Which of the Following Statements About Activity-Based Costing Is TRUE

question 122

Multiple Choice

Which of the following statements about activity-based costing is TRUE?

• A)It does not affect cost control.
• B)Indirect cost allocation bases are unlikely to be cost drivers.
• C)It provides less information than traditional cost systems.
• D)It provides similar results to traditional costing when one activity creates a substantial amount of total cost.
• E)It provides similar results to traditional costing when different products use resources from different activities in different proportions.

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Definitions:

Intellectual Performance

A measure of cognitive function and ability in tasks requiring thinking, problem-solving, and other mental processes.

Self-control

The ability to regulate one's emotions, thoughts, and behaviors in the face of temptations and impulses.

Permissive

Referring to a parenting or management style characterized by low demands with high responsiveness, often allowing considerable self-regulation.

Impulsiveness

A tendency to act on a whim, displaying behavior characterized by little or no deliberation, reflection, or consideration of the consequences.