In a Time-Driven ABC System, Once the Managers Determine the Cost

question 54

Multiple Choice

In a time-driven ABC system, once the managers determine the cost of per time unit of supplying resources to activities, the next step would be

• A)for managers to determine how long an employee takes to do an activity.
• B)assign costs of a department's resources to the customer who uses the services.
• C)for managers to determine the time it takes to carry out one unit of each kind of activity.
• D)attempt to estimate practical capacity.

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Definitions:

Quasilinear Utility Functions

Utility functions where consumers' utility is linear in one argument, typically representing money, allowing for easy analysis of changes in wealth.

Edgeworth Box

An Edgeworth Box is a visual representation used in microeconomics to show the distribution of resources or the optimal allocation between two individuals, demonstrating how both can benefit through trade.

Pareto Optimal Allocations

A condition of resource allocation where it's impossible to make any one individual better off without making at least one individual worse off, emphasizing the concept of efficiency in economic distribution without losses.

Edgeworth Box

A model used in economics to show how different allocations of goods or two goods can affect two individuals' utility levels.