Which of the Following Statements Is/are True

question 60

Multiple Choice

Which of the following statements is/are true?
i.Both conventional cost systems and ABC focus on resources supplied
ii.Plant and equipment is an example of a committed resource under an ABC system.
iii.Committed resources always equal resources used.

• A) i
• B) ii
• C) iii
• D) ii and iii

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Definitions:

Variable Cost Concept

Expenses that change in proportion to the amount of production or service operations.

Differential Analysis

A decision-making process that examines the differences in cost and revenue between different business alternatives to determine the most profitable option.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Outside Purchase

Acquisition of goods or services from external suppliers due to inability or inefficiency in producing internally.