Because Absorption Cost Data Already Exists in General Ledger Accounts

question 108

True/False

Because absorption cost data already exists in general ledger accounts, it is cost effective to use it for pricing.

---

Definitions:

Factor Analysis

A statistical method used to describe variability among observed, correlated variables in terms of potentially lower unobserved variables, called factors.

Practical Intelligence

Intelligence that involves the ability to solve everyday problems through learned, rather than innate, capabilities.

Analytical Intelligence

A facet of intelligence that involves the ability to analyze, evaluate, judge, compare, and contrast.

Creative Ideas

Novel and useful concepts or solutions generated by thinking outside the traditional frameworks.