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

question 95

Multiple Choice

Which of the following statements is true regarding activity-based costing in administration?

• A) The principles of ABC are different when applied to administrative services.
• B) ABC in administration involves five steps.
• C) All cost drivers in an administrative system will be time-related.
• D) Activity-based costing for administrative services follows the same four-step procedure described for manufacturing.

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Definitions:

Trailer Flooring

The material or construction used on the floor of a trailer to offer durability, support, and resistance to elements and heavy loads.

Suspension

Means by which axles are attached to the vehicle frame; supports the frame and dampens it from road shock using springs (leaf, air, torsion, rubber, etc).

Landing Gear

The retractable legs used to support a semi-trailer when not coupled to a tractor; most have gear-actuated, retractable legs but hydraulic and lock-pin systems are also available.

Rigid Double-Drawbar System

A specific hitching setup in towing configurations where two drawbars are used in a rigid manner to link a truck and a trailer or between trailers.