One of the Lessons of Activity-Based Costing (ABC)is That Costs

question 50

Multiple Choice

One of the lessons of activity-based costing (ABC) is that costs depend on

• A)volume of the product,only.
• B)complexity of the product,only.
• C)volume and complexity of the product.
• D)factors other than the volume or complexity of the product.

---

Definitions:

Automated Jointer

A machine tool used in woodworking to flatten or straighten the edges of boards automatically, improving efficiency and precision.

Unused Capacity

The portion of a production facility or resource that is available but not currently in use or producing outputs.

Job-Order Costing

An accounting method that tracks costs individually for each job, suitable for businesses that produce custom products or services.

Automated Bandsaw

A type of sawing machine equipped with a blade in the form of a continuous band and automated for efficient cutting operations.