Which of the Following Statements Concerning Activity-Based Costing [ABC] Is

question 30

Multiple Choice

Which of the following statements concerning Activity-Based Costing [ABC] is incorrect?

• A) production processes are broken down into activities.
• B) cost drivers are used to assign costs between activities.
• C) it is now used by firms much more commonly than traditional costing.
• D) the use of cost drivers allows management to apply overhead more accurately to products with different production requirements.

---

Definitions:

Fair Trade Act

Legislation aimed at ensuring fair trade practices, protecting consumer rights, and encouraging ethical and equitable trading conditions.

Unfair Practices Act

Legislation designed to protect consumers and businesses against unethical or illegal business practices.

Patent Law

A field of law concerned with granting inventors exclusive rights to their inventions for a limited period in exchange for public disclosure of the invention.

Competitive Position

The standing or ranking of a company, product, or brand in the marketplace relative to its competitors, often based on market share, reputation, or perceived value.