Activity-Based Costing (ABC)

question 64

Multiple Choice

Activity-based costing (ABC) :

• A) should not be applied to non-manufacturing activities.
• B) should not be applied to service companies.
• C) can be applied to administrative activities.
• D) can only be used by manufacturing companies.

---

Definitions:

GDP Price Index

An economic metric that measures changes in the price level of all goods and services included in Gross Domestic Product.

Nominal Gross Domestic Product

a measure of a country's economic output (all goods and services produced) valued at current market prices, without adjusting for inflation.

Consumer Price Index

is a measure that examines the weighted average of prices of a basket of consumer goods and services, often used to assess inflation.

Annual Rate

Refers to the yearly interest rate or growth rate applied to investments, loans, or any financial product that calculates earnings or payments over a year.