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.

---

Definitions:

Public Ownership

Ownership of assets by the government or state, as opposed to private individuals or organizations.

Man-Made Resources

Assets and materials created by humans to produce goods and services, such as machinery and buildings.

Capital

Refers to financial assets or resources that companies use to fund their operations and growth.

Ration

To distribute or allocate a scarce resource or supply in a controlled manner among various users.