Which of the Following Statements Concerning Activity-Based Costing (ABC)is Not

question 3

Multiple Choice

Which of the following statements concerning activity-based costing (ABC) is not true?

• A) ABC can be applied in service businesses as well as in manufacturing businesses.
• B) It has been introduced to overcome distortions in costing multiple products which occur when a single base is used to apply overhead to products.
• C) ABC is cheaper and less time consuming to implement than traditional costing systems.
• D) Overhead costs are accumulated by activities and then assigned to cost objects using a different cost driver for each activity.

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Definitions:

Basic Taste

The fundamental groups of taste perceived by humans, typically described as sweet, sour, salty, bitter, and umami.

Protein-Rich Foods

Edibles high in protein content, essential for body repair, growth, and overall health, such as meat, fish, eggs, and beans.

Umami

One of the five basic tastes, characterized by its savory flavor.

Placebo

A material lacking medicinal impacts, utilized as a comparative standard in evaluating novel medications.