Which of the Following Statements Is True Concerning Activity-Based Costing

question 125

Multiple Choice

Which of the following statements is true concerning activity-based costing (ABC) ?

• A)ABC can distort product costs.
• B)ABC fails to recognize that the demand for overhead activities is driven by product-sustaining activities.
• C)ABC permits management to focus on the increased efficiencies and better resource utilization.
• D)ABC first assigns costs to products,then to cost pools.

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Definitions:

Allyl Anion

A reactive ion derived from allyl compounds, notable for its use in organic synthesis as a nucleophile.

Concerted Reaction

A chemical reaction in which all bonds are broken and formed in a single step, typically involving a cyclic transition state.

Allylic Halide

A halogenated compound where the halogen atom is positioned adjacent to a carbon-carbon double bond.

Grignard Reagent

An organomagnesium compound used in a variety of synthetic reactions in organic chemistry to form carbon-carbon bonds.