Which of the Following Is True with Activity Based Cost

question 53

Multiple Choice

Which of the following is true with activity based cost accounting?

• A) Activity-based costing ignores the allocation of marketing and distribution costs.
• B) Activity-based costing is more likely to result in major differences from traditional costing systems if the firm manufactures only one product rather than multiple products.
• C) The focus is on activities that account for a sizable fraction of indirect costs .
• D) Chances of product-cost cross-subsidization are higher in activity-based costing compared to traditional costing systems.

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Definitions:

Border States

During the American Civil War, the slave states that did not secede from the Union, including Delaware, Maryland, Kentucky, and Missouri.

Maryland

A state located in the Mid-Atlantic region of the United States, known for its significant historical sites, diverse landscapes, and being home to the Chesapeake Bay.

Tennessee

A U.S. state located in the southeastern region, known for its significant contributions to American music, specifically country, blues, and rock and roll.

Geographic Advantage

The benefits a country, region, or area enjoys because of its geographic location, which can affect its economic, military, or strategic importance.