Which of the Following Statements Is Most Complete and Correct

question 88

Multiple Choice

Which of the following statements is most complete and correct?

• A) Activity-based costing uses non-volume-based cost drivers only.
• B) Activity-based costing uses volume-based cost drivers.
• C) Activity-based costing recognises that both volume-based and non-volume-based cost drivers may be appropriate.
• D) None of the given answers.

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Definitions:

Gain Or Loss

The financial result when the selling price of an asset differs from its cost, resulting in either profit (gain) or deficit (loss).

Original Cost

The initial purchase price or investment made to acquire an asset, not accounting for depreciation or amortization.

Asset Improvements

Expenditures made to increase the usefulness or value of a fixed asset.

Ordinary Maintenance

Routine and regular upkeep activities required to maintain or preserve assets in their original condition, preventing deterioration over time.