Question

1. One of the advantages of activity-based costing systems over traditional systems is that ABC systems...

1. One of the advantages of activity-based costing systems over traditional systems is that ABC systems require less record-keeping.

true/ false

2. The term "quality" refers to the degree to which products or services exceed customer expectations.

True or False

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Answer #1

1. One of the advantages of activity-based costing systems over traditional systems is that ABC systems require less record-keeping.

Answer:- False

Reason:- Activity based costing recquires more record keeping when compared to traditional costing methods. Managers have to determine the activity driver, the driver rate per process etc.. all these recquire intensive documentation.

2. The term "quality" refers to the degree to which products or services exceed customer expectations.

Answer:- False

Reason:- Quality is ability of a products or services to frequently (consistently to be precise) meet or exceed the customers level of expectation. It is not only confined to exceeding customer expectation. Just meeting the expectation is also referred as quality.

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