In an ABC System, an Activity Is Best Defined as A

question 33

Multiple Choice

In an ABC system, an activity is best defined as a:

• A) Type of task performed in an organization
• B) Collection of activities in a particular department
• C) Collection of cost drivers associated with a particular cost pool
• D) Group of cost pools associated with a particular department

---

Definitions:

Aggregate Purchases

The total amount spent by consumers, businesses, and the government on goods and services within a particular period.

Unintended Inventory Investment

Occurs when a business accumulates more inventory than planned due to unexpected changes in demand or production levels.

Keynesian Theory

An economic theory positing that government intervention through fiscal policy can affect the level of economic activity and mitigate the effects of recessions.

Output and Employment

The relationship between the production of goods and services in an economy and the labour force participation required to achieve this production.