Managers Have Greater Confidence in the Accuracy of Costs of Products

question 32

Multiple Choice

Managers have greater confidence in the accuracy of costs of products and services reported by activity-based systems because _____.

• A)activity-based systems are more expensive
• B)activity-based systems are more complex
• C)activity-based systems classify more costs as direct
• D)All of these answers are correct

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Definitions:

Attitude

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor.

Volatile Relationships

Relationships characterized by rapid, unpredictable changes in sentiment, potentially leading to conflicts or instability.

Family Relationships

The connections, both biological and emotional, among members of a family unit.

Family Businesses

Enterprises owned and operated by one or more family members who are involved in the day-to-day management and decision-making processes.