Which of the Following Is a Characteristic of Activity-Based Costing

question 12

Multiple Choice

Which of the following is a characteristic of activity-based costing?

• A)It is a traditional costing method.
• B)It encourages process-value analysis.
• C)It always results in a lower cost assigned to goods or services.
• D)It assigns shared costs to jobs.

---

Definitions:

Discounted Note

A promissory note whose proceeds are less than its face value because it was sold or issued at a discount.

Account Balance

The amount of money present in an account at any given time, reflecting all transactions such as deposits, withdrawals, and interest earned.

Financial Statement

A report in written form that provides a quantitative analysis of a corporation's financial status, encompassing the balance sheet, income statement, and cash flow statement.

Temporary/Permanent

In accounting, this distinction refers to how certain accounts (temporary) close at the end of a fiscal period, while others (permanent) carry their balances forward.