Which of the Following Statements Is True of Activity-Based Costing

question 142

Multiple Choice

Which of the following statements is true of activity-based costing?

• A) In activity-based costing, direct labor-hours is always the best allocation base to allocate all non-manufacturing indirect costs.
• B) Activity based costing is more suited to companies with high product diversity than companies with single product line.
• C) Activity based costing broadly averages or spreads the cost of resources uniformly to cost objects such as products or services.
• D) The main advantage of activity-based costing over peanut-butter costing is the accurate distribution of all direct costs to the products.

---

Definitions:

Conflicting Behaviors

Actions or responses that are contradictory or opposed to one another, often causing confusion or internal conflict.

Attitudes

Attitudes are psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor.

Compliance

Compliance involves conforming to a rule, standard, or command, often within societal, legal, or regulatory frameworks.

Obedience

The act of following orders or complying with instructions, typically from an authoritative figure.