Which of the Following Statements Comparing Traditional and Activity-Based Costing

question 8

Multiple Choice

Which of the following statements comparing traditional and activity-based costing (ABC) is true?

• A) ABC systems eliminate cross subsidies.
• B) Traditional systems eliminate cross subsidies.
• C) ABC and traditional systems often produce similar product cost information.
• D) All of the above are true.

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Definitions:

Data Collection

The process of gathering and measuring information on targeted variables in an established systematic fashion, enabling one to answer relevant questions and evaluate outcomes.

DBS

May refer to Database Systems, which are software applications designed to manage, manipulate, and query structured data stored in databases.

Knowledge Worker

An individual whose main capital is knowledge, typically engaged in the task of solving complex problems, generating ideas, or developing new information or products.

Marketing

Marketing is the process of promoting, selling, and distributing a product or service, involving market research and advertising to meet consumer needs.