Which of the following is true regarding activity-based costing (ABC)?
A) The benefits of using ABC always outweigh its limitations.
B) The lower the proportion of overhead costs as compared to direct materials and direct labor costs, the more likely a company will benefit by using ABC.
C) Companies with a high-proportion of non-unit-level costs should rarely use ABC.
D) High measurement costs associated with ABC may deter some companies from its use.
D
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In the event of a loss under a personal auto policy, an insured is required to submit to the insurance company all of the following information, EXCEPT:
a. An appraisal of the damaged property. b. A list of any known witnesses. c. A notice of claim. d. Proof of loss statement if requested.
The principal benefits of arbitration are that it is faster and:
A. doesn't cost anything B. less expensive than court action C. more expensive than court action D. costs about the same as going to court