Which of the Following Is a Reason for Using Activity-Based

question 85

Multiple Choice

Which of the following is a reason for using activity-based costing to allocate service department costs?

• A)It results in identifying more accurate cost drivers.
• B)It is required by generally accepted accounting principles.
• C)It is required by the tax authorities.
• D)All of the answers are correct.

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Definitions:

Dormant

In a state of temporary inactivity or rest, with the potential to reactivate or wake.

Microclimate

A localized climate that differs from the surrounding area, often influenced by factors like elevation, orientation, or human activity.

Tropical Desert

A desert located in a tropical climate, characterized by high temperatures, minimal rainfall, and sparse vegetation.

Temperate Desert

A biome characterized by low precipitation, moderate temperatures compared to other deserts, and specific vegetation adapted to these conditions.