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

question 46

Multiple Choice

Which of the following statements is true regarding activity-based costing (ABC) ?

• A) It is based on the concept that a single cost driver can drive all overhead costs.
• B) It is based on the concept that activities drive overhead costs.
• C) It is based on the concept that unit-level costs drive all overhead costs.
• D) It is based on the concept that either the number of direct labor or machine hours incurred drives all overhead costs.

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Definitions:

Natural Selection

The process by which biological traits become either more or less common in a population as a function of the effect of inherited traits on the differential reproductive success of organisms interacting with their environment.

Epigenetics

The study of heritable changes in gene expression that do not involve changes to the underlying DNA sequence, often influenced by environmental factors.

Genetic Changes

Alterations in the DNA sequence of an organism, which can affect physical traits, susceptibility to diseases, and behavior.

Risk Factors

Attributes or exposures that increase the likelihood of developing a disease or injury.