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

question 29

Multiple Choice

Which of the following statements is true about activity-based costing?

• A)Only one activity should be used for a company.
• B)Many different activity bases are used in applying overhead.
• C)There can only be one cost driver.
• D)Direct materials and direct labor are applied to work-in-process based upon cost drivers.

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Definitions:

Socialization

The process by which individuals learn and adopt the values, norms, and behaviors that are expected of members in a particular society or organization.

PJ Fit

Person-job fit; the compatibility between an individual's characteristics and the demands of the job or the culture of the organization.

PO Fit

Person-Organization Fit, referring to the compatibility between an individual's characteristics and the values or culture of an organization, affecting engagement and satisfaction.

PE Fit

Person-Environment Fit refers to the congruence between an individual's characteristics and the demands of the environment or organization they are in.