What Are Three Advantages of Activity-Based Costing Over Traditional Volume-Based

question 209

Multiple Choice

What are three advantages of activity-based costing over traditional volume-based allocation methods?

• A)Ease of use,more accurate product costing,and more effective cost control.
• B)Fewer allocation bases,ease of use,and a direct correlation to production volume.
• C)More accurate product costing,more effective cost control,and better focus on the relevant factors for decision making.
• D)More accurate product costing,fewer cost objects,and a direct correlation to production volume.
• E)More accurate product costing,ease of use,less costly to implement.

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Definitions:

Validity

The extent to which a test, measurement, or research study accurately measures what it is intended to measure.

Interrater Reliability

The degree of agreement among different raters or observers assessing the same phenomenon.

Split-half Reliability

The reliability of a test measured by dividing it into two parts and assessing how consistently they produce similar results.

Alternate Forms

A method in psychological and educational measurement where two different versions of a test are used to assess the same construct, reducing possible test-retest bias.