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.

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Definitions:

Nitric Oxide (NO)

A gaseous signaling molecule involved in various physiological processes, including vasodilation and neurotransmission.

Erectile Dysfunction

A condition characterized by the inability to maintain an erection sufficient for satisfactory sexual performance.

Viagra

A pharmaceutical drug used to treat erectile dysfunction by increasing blood flow to the penis.

Inhibitory Neurotransmitter

A type of neurotransmitter that reduces the likelihood of the neuron it binds to from firing an action potential, effectively decreasing activity in the nervous system.