When Managers Use ABC Cost Allocation Rates for Decision Making

question 124

Multiple Choice

When managers use ABC cost allocation rates for decision making without distinguishing between flexible and committed costs, their estimates of incremental costs are biased upward or downward. If activity levels are steadily increasing over time, this bias would provide:

• A) Information that overstates costs
• B) Information that understates costs
• C) Accurate information
• D) Reliable information

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The execution of tasks and duties by workers as part of their job role within an organization.

Apprenticeship Programs

Formal programs combining workplace training and classroom learning to equip individuals with practical and theoretical skills in a trade or profession.

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The supply and demand for labor, where employers seek to hire workers and workers look for jobs.

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