Which of the Following Is a Disadvantage of an Activity-Based

question 3

Multiple Choice

Which of the following is a disadvantage of an activity-based costing system?

• A) It classifies some indirect costs as direct costs.
• B) It assumes all costs as direct costs.
• C) It needs activity-cost rates to be updated regularly.
• D) It ignores direct costs of a product.

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Definitions:

Human Papilloma Virus

A group of viruses that can cause warts on the skin and mucous membranes, and in some cases, lead to cancers such as cervical cancer.

Venereal Disease Research Laboratory

A diagnostic test primarily used to detect syphilis through blood serum samples.

HIV

Human Immunodeficiency Virus, a virus that attacks the immune system and can lead to Acquired Immune Deficiency Syndrome (AIDS) if not treated.

Sexual Response Cycle

The sequence of physical and emotional changes that occur as a person becomes sexually aroused and participates in sexually stimulating activities, including intercourse and masturbation.