Activity-Based Cost Management (ABCM) Can Best Be Defined As

question 80

Multiple Choice

Activity-based cost management (ABCM) can best be defined as:

• A) a cost system using multiple departmental overhead rates.
• B) the use of cost information gathered using activity-based costing (ABC).
• C) a quality-control system focusing on eliminating errors and mistakes.
• D) an incentive system for a company's key decision-makers.

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Definitions:

Liability

A cost when a corporate’s responsibility has not been met.

Partnership

Exists when two or more persons associate to conduct a business.

Regulations

Regulations are rules or directives made and maintained by an authority to control or govern behavior within a specific system.

Intrinsic Value

The inherent worth of an asset, security, or company that is determined through analytical methods and underlying perceptions of its true value, beyond its current market price.