Which of the Following Steps Is Not Involved in the ABC

question 45

Multiple Choice

Which of the following steps is not involved in the ABC approach?

• A)Identify activities that cause costs to be incurred.
• B)Allocate costs to products based on activity usage.
• C)Group costs of activities into cost pools.
• D)Improve processes based on benchmarking.

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Definitions:

Maximize Utility

An economic principle that suggests individuals seek to obtain the highest level of satisfaction possible from their resources.

Maximize Benefits

Strategies or actions aimed at obtaining the greatest possible advantage or value from a situation, resource, or system.

Organizational Architecture

The structure and systems in place within an organization that shape its behavior and performance.

Decision Initiation

The process of beginning the process of making a choice or determining a course of action.