What are three advantages of activity-based costing over traditional volume-based allocation methods?
A. Ease of use, more accurate product costing, and more effective cost control.
B. More accurate product costing, ease of use, less costly to implement.
C. Fewer allocation bases, ease of use, and a direct correlation to production volume.
D. More accurate product costing, more effective cost control, and better focus on the relevant factors for decision making.
E. More accurate product costing, fewer cost objects, and a direct correlation to production volume.
Answer: D
You might also like to view...
An understatement of ending inventory will cause:
A. An overstatement of assets and equity on the balance sheet. B. An understatement of assets and an overstatement of equity on the balance sheet. C. An understatement of assets and equity on the balance sheet. D. An overstatement of assets and an understatement of equity on the balance sheet. E. No effect on the balance sheet.
Which of the following statements regarding earnings per share is true?
a. Earnings per share cannot be used to compare companies of different sizes. b. Earnings per share is used to calculate the dividend yield. c. Earnings per share is calculated using the average number of authorized shares. d. It is mandatory under GAAP and IFRS to disclose earnings per share.
Estimating a customer's lifetime purchasing potential is important because it helps marketers to
A. recognize that mass marketing is the best way to reach customers. B. select the right channel of distribution. C. decide whether to place ads online or in magazines. D. devise long-range plans and strategies for building customer relationships. E. make a quick sale on a product.
If the actual level of activity is 4% less than planned, then the fixed costs in the static budget should be decreased by 4% before comparing them to actual costs.
Answer the following statement true (T) or false (F)