Which of the Following Statements Regarding Activity-Based Costing (ABC) Is

question 75

Multiple Choice

Which of the following statements regarding activity-based costing (ABC) is false?

• A) ABC can be used to measure the cost of cost objects.
• B) ABC can be used to analyse the profitability of customers.
• C) ABC is not an appropriate tool for analysing non-manufacturing costs.
• D) ABC evolved as a response to problems with traditional costing systems.

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Definitions:

Compulsions

Repetitive behaviors or mental acts that an individual feels driven to perform in response to an obsession, or according to rules that must be applied rigidly.

Obsessive-Compulsive Disorder

A mental disorder where individuals experience recurring, unwanted thoughts (obsessions) and repetitive behaviors (compulsions) as a way to manage anxiety.

Specific Phobia

An intense, irrational fear of a specific object, situation, or activity that is actively avoided or endured with extreme anxiety.

Specifiers

Are additional descriptors used in psychiatric diagnosis to provide a more comprehensive picture of the disorder.