Which of the Following Statements Concerning Activity-Based Costing Is Correct

question 6

Multiple Choice

Which of the following statements concerning activity-based costing is correct?

• A) ABC is a refinement of job costing.
• B) ABC was introduced because of globalisation.
• C) ABC is most useful when a smaller number of similar products are produced by a firm.
• D) Direct labour hours can be a cost driver for ABC.

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Definitions:

Periodic Review

An assessment conducted at regular intervals to evaluate performance, compliance, or progress towards objectives.

Face-To-Face Meetings

Direct interactions between two or more individuals present in the same location, typically for discussion or collaboration.

Labor-Management

The interaction, negotiation, and relationship between the workforce (labor) and the management team of an organization, often focusing on collective bargaining, workplace conditions, and labor rights.

Labor Agreement

A contractual agreement between an employer and a group of employees (often represented by a union) regarding terms of employment.