In Which Way Does Activity-Based Costing (ABC)improve Cost Assignment

question 84

Multiple Choice

In which way does activity-based costing (ABC) improve cost assignment?

• A)Management is provided with true costs.
• B)ABC uses a greater number of cost pools and cost drivers than traditional overhead allocation techniques.
• C)ABC follows generally accepted accounting principles more closely.
• D)ABC is easier to use than traditional overhead allocation techniques.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.