Characteristics of Activity-Based Costing Include

question 65

Multiple Choice

Characteristics of activity-based costing include:

• A) a greater number of overhead cost application bases compared to traditional costing systems.
• B) the overhead cost application bases are likely to be more accurate cost drivers than would be the case in traditional costing systems.
• C) the simplicity of the system makes it easy to implement.
• D) a greater number of overhead cost application bases compared to traditional costing systems AND the overhead cost application bases are likely to be more accurate cost drivers than would be the case in traditional costing systems.

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Definitions:

Run Out of Money

A situation where an individual or organization depletes their financial resources completely, rendering them unable to meet their financial obligations.

Chance of Success

The probability or likelihood that a specific action, endeavor, or strategy will lead to a desirable outcome or achieve specific goals.

Entrepreneurial Venture

A new business or startup that is initiated by an entrepreneur with the aim of seeking innovation, growth, and profit.

Entrepreneurs

Individuals who create, organize, and manage a new business or enterprise, taking on greater than normal financial risks in order to do so.