An Activity-Based Costing System Improves the Allocation of Which of the Following

question 37

Multiple Choice

An activity-based costing system improves the allocation of which of the following manufacturing costs?

• A) Sales commissions
• B) Indirect manufacturing costs
• C) Direct materials
• D) Direct labour

---

Definitions:

End Justifies

A philosophical principle suggesting the morality of an action can be determined by its outcome or intended result.

Means

Methods or ways employed to achieve a certain end or goal.

Rule Utilitarianism

A form of utilitarianism that suggests the best action is one that conforms to a rule that leads to the greatest good.

Greatest Good

A principle often associated with utilitarianism, focusing on actions that produce the highest level of happiness or benefit for the greatest number of people.