Which of the Following Is a Likely Advantage in Activity-Based

question 47

Multiple Choice

Which of the following is a likely advantage in activity-based costing (ABC) ?

• A) A decrease in the need to maintain accurate cost driver information.
• B) A decrease in the need to maintain accurate overhead cost information.
• C) An increase in the ability to trace indirect costs to specific activities.
• D) As increase in the cost of accumulating, tracking, and assigning costs to products and services.

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Definitions:

Coefficient of Correlation

A statistical measure that calculates the strength and direction of a linear relationship between two variables.

Slope

The rate of change in the variable on the y-axis per unit change in the variable on the x-axis in a coordinate system; it quantifies the steepness of a line.

Least Squares Line

A linear equation that minimizes the sum of the squares of the differences between observed and predicted values.

Regression Line

A line of best fit through a dataset in regression analysis, representing the relationship between independent and dependent variables.