Which Statement Is True in an Activity-Based Costing Environment

question 12

Multiple Choice

Which statement is true in an activity-based costing environment?

• A)Managers do not need to know product costs.
• B)Companies use departmental overhead rates.
• C)Companies compute the rate for each cost driver in each activity center.
• D)Companies compute the rate for up to three cost drivers in each activity center.

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Definitions:

Industrial Revolution

A period of significant technological, socioeconomic, and cultural change, beginning in the 18th century, marked by the transition from manual production methods to machine-based manufacturing processes.

Alienation

A state of disconnection and isolation experienced by an individual or group, resulting from structural changes in society or personal relationships.

Capitalist Economy

An economic system where trade, industry, and the means of production are largely or entirely controlled by private owners for profit.

Karl Marx

A 19th-century philosopher, economist, and revolutionary socialist whose works form the basis of Marxism.