The Cost of Implementing an ABC System Is Likely to Be

question 129

Multiple Choice

The cost of implementing an ABC system is likely to be lower if the number of times an activity is performed:

• A) Is low
• B) Is high
• C) Can easily be tracked
• D) Decreases with volume

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Definitions:

Marginal Cost

The cost added by producing one extra item of a product.

Arena

A place or scene of activity, debate, or conflict.

Unsold Seats

Refers to seats in venues such as theaters, airplanes, or sports stadiums that remain unoccupied because they were not purchased or reserved.

Sunk Cost

A cost that has already been incurred and cannot be recovered, which should not influence ongoing decision-making processes.