Which of the Following Is Not a Limitation of Activity-Based

question 82

Multiple Choice

Which of the following is not a limitation of activity-based costing?

• A)Maintaining an activity-based costing system is more costly than maintaining a traditional direct labor-based costing system.
• B)Changing from a traditional direct labor-based costing system to an activity-based costing system changes product margins and other key performance indicators used by managers.Such changes are often resisted by managers.
• C)In practice,most managers insist on fully allocating all costs to products,customers,and other costing objects in an activity-based costing system.This results in overstated costs.
• D)More accurate product costs may result in increasing the selling prices of some products.

Identify and explain Simmel's differentiation between forms and contents of social interaction.

Acknowledge the historical context of Simmel's work and its relevance to contemporary society.

Appreciate the complexity of personal identities and social roles in the light of Simmel's theories.

Develop critical thinking regarding the influence of socio-economic factors on individual and group behavior.

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Definitions:

Support Departments

Units within an organization that provide essential services but do not directly contribute to the production of goods or services sold.

Support Department Costs

Expenses incurred by departments that do not directly produce goods or services but provide essential support to production departments.

Investment Center

A business unit within an organization that is directly responsible for generating revenue as well as controlling its costs and investments.

Support Departments

Departments within a business that provide essential services and support to the primary operations but do not directly generate revenue.