The Activity-Based Costing System

Multiple Choice

The activity-based costing system

A) is the most appropriate method of cost accounting for rigid hierarchical organizations.
B) effectively departmentalizes an organization based on its core functions, such as human resources and maintenance.
C) provides a more accurate picture of how costs should be charged to products and services.
D) assumes that organizations are bureaucratic "machines" that can be separated into component functions.
E) fails to allocate costs across business processes and is less effective than traditional methods of cost accounting.