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.

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Definitions:

Alarm-Calling

A behavior in which animals emit specific vocalizations to warn conspecifics of potential danger or predators.

Inclusive Fitness

A concept in evolutionary biology that considers an individual's genetic success through its own offspring and by supporting relatives.

Indirect Fitness

The genetic gain achieved by an organism by helping relatives rear their offspring, thereby passing on shared genes.

Alarm-Calling

Vocalizations made by certain animals to alert members of their group to potential danger.