Which of the Following Statements Best Completes This Sentence: 'Activity-Based

question 51

Multiple Choice

Which of the following statements best completes this sentence: 'Activity-based costing...'

• A) asserts that cost behaviour can best be determined if the split between fixed and variable cost is ignored.
• B) has replaced standard costing as the preferred method of allocating costs to products.
• C) is based on allocating fixed overheads based on the elements that drive them.
• D) emphasises the need to obtain a better understanding of the behaviour of overhead costs.

---

Definitions:

Practical

Concerned with the actual doing or use of something rather than with theory and ideas.

Traditional

Pertaining to customs, beliefs, or practices that have been passed down through generations or have been established by long usage.

Constructs

Conceptual elements or tools used to measure or represent phenomena in the scientific and psychological fields.

People

Human beings collectively, often referred to in the context of society, organizations, or groups.