Which of the Following Statements Is TRUE of Costing Systems

question 2

Multiple Choice

Which of the following statements is TRUE of costing systems?

• A) Many traditional costing systems can distort product costs and profitability.
• B) Traditional costing systems tend to be more costly than activity-based costing systems.
• C) Activity-based costing systems tend to combine various costs into a single cost pool.
• D) Activity-based costing systems tend to use fewer cost pools than does a traditional costing system.

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Definitions:

Servo Motor

A specialized motor designed to provide precise control of angular or linear position, velocity, and acceleration.

Control Valve

A valve used to regulate the flow of a fluid by varying the size of the flow passage as directed by a signal from a controller.

Derivative Action

In control systems, a component of a PID controller that predicts system behavior and acts proportionally to the rate of change of the error signal.

Error Signal

A feedback signal indicating a discrepancy between the desired and actual performance of a system.