Which Statement Best Describes Activity-Based Costing

question 3

Multiple Choice

Which statement best describes activity-based costing?

• A) It results in higher revenues.
• B) It is a traditional costing method.
• C) It encourages efficiency and customer value.
• D) It always results in a lower cost assigned to goods or services.

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Definitions:

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A hair cleansing product that is made from natural ingredients and herbs, pitched as a healthier or more eco-friendly alternative to regular shampoos.

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A strategy focusing on building long-term relationships with customers to foster loyalty and repeat business rather than focusing solely on individual transactions.

Direct Marketing

A type of advertising strategy that sends messages directly to consumers without using intermediary media.

Marketing Program

A comprehensive plan that integrates all of the marketing efforts of a company, including advertising, sales, promotions, pricing, product development, and distribution.