Consider the Situation Where an Activity-Based Costing System Is in Use

question 64

Multiple Choice

Consider the situation where an activity-based costing system is in use rather than a traditional volume-based costing system. Which of the following statements is/are true?

• A) The relevant cost decision model would be inappropriate if activity-based costing is used.
• B) The relevant cost decision model is still appropriate, but a different decision criterion must be used.
• C) The data collection and analysis step is going to be affected by the use of non-volume-related cost drivers.
• D) The relevant cost decision model would be inappropriate if activity-based costing is used AND the data collection and analysis step is going to be affected by the use of non-volume-related cost drivers.

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Definitions:

Impulses

Sudden, involuntary urges to act or do something, often without premeditation.

Suicide Rates

The number of suicides occurring in a particular population over a specified period of time.

Ethnic Groups

Communities or populations sharing a common culture, ancestry, language, history, and often geographic region.

Gender

The culturally defined concepts of masculinity and femininity.