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

question 56

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 conventional costing systems.

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Definitions:

Truth Table

A table used in logic to determine the truth or falsity of all possible combinations of logical expressions.

Atomic Sentences

Simple statements in logic that cannot be broken down into smaller components while maintaining original meaning.

Truth Table

A mathematical table used in logic to determine the truth value of logical expressions depending on the truth values of their components.

Hypothetical Syllogism (HS)

A form of logical argument where two conditional statements lead to a conclusion, following the pattern: If A, then B; If B, then C; Therefore, if A, then C.