In an ABC System, Committed Costs

question 114

Multiple Choice

In an ABC system, committed costs:

• A) Do not vary with capacity levels
• B) Vary with activity levels
• C) Should not be included in ABC cost pools
• D) Are related to capacity

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Definitions:

Personal Construct Theory

A theory in psychology proposed by George Kelly, emphasizing that individuals use personal constructs (mental models) to interpret and predict events in their lives.

George Kelly

An American psychologist known for his theory of personal constructs, which suggests that individuals use personal systems to understand and predict the world.

Hierarchy of Needs

A theory proposed by Abraham Maslow that suggests human needs are organized in a hierarchical structure, starting from basic physiological needs to higher levels of needs such as self-actualization.

Self-actualization

The achievement of realizing one’s capabilities and talents, viewed as a fundamental desire or necessity inherent in all individuals.