Consider the Following Statements About Relevant Costing and Activity-Based Costing

question 81

Multiple Choice

Consider the following statements about relevant costing and activity-based costing:
I. The concept of relevant costs and benefits cannot be used in conjunction with an activity-based costing system.
II. The concept of relevant costs and benefits must be modified for use with an activity-based costing system.
III. Generally speaking, the decision maker can better associate relevant costs with the activities that drive them under an activity-based costing system than under a conventional product-costing system.
Which of the above statements is (are) true?

• A) I only.
• B) II only.
• C) III only.
• D) I and II.
• E) II and III.

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Definitions:

Astrocytes

Star-shaped glial cells in the brain and spinal cord involved in biochemical support of endothelial cells and repair processes in the central nervous system.

Microglia

Glial cells that originate in the blood, aid in cell repair, and scavenge debris in the nervous system.

Astrocytes

Star-shaped glial cells in the brain and spinal cord that play a crucial role in supporting neurons, forming blood-brain barrier, and regulating neurotransmitters.

Schwann Cells

Specialized cells in the peripheral nervous system responsible for the formation of myelin, which speeds up the electrical impulses in neurons.