Time-Driven Activity-Based Costing (TDABC) Is a Before-The-Fact Simplification Method That

question 87

Multiple Choice

Time-Driven Activity-Based Costing (TDABC) is a before-the-fact simplification method that simplifies the first stage of assigning costs to activities of activity-based costing (ABC) system by:

• A)eliminating the need for detailed interviewing and surveying to determine resource drivers.
• B)expanding the number of activity rates used so that the rates reflect the actual consumption of overhead costs.
• C)allocating weights and setting the result equal to the product's consumption ratio.
• D)recognizing that many of the so-called fixed overhead costs vary in proportion to changes other than production volume.

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Definitions:

Efficacy

The ability to produce a desired or intended result.

Power

The probability that a test will correctly reject a false null hypothesis; in other words, the ability of a study to detect an effect if there is one.

Feasibility

The measure of how easily or conveniently a proposed project or study can be carried out or implemented.

Effectiveness

The degree to which a specific intervention, procedure, regimen, or service produces a beneficial result under real-world conditions.