Activity-Based Costing (ABC) Eliminates Arbitrary Assignments of Overhead

question 109

True/False

Activity-based costing (ABC) eliminates arbitrary assignments of overhead.

---

Definitions:

Sales

The total revenue generated from goods or services sold by a company during a specific period.

COGS

Stands for Cost of Goods Sold, which is the direct costs attributable to the production of the goods sold by a company.

Current Asset Financing

A strategy involving the use of short-term credit to finance the ongoing operations and current assets of a business.

Net Working Capital

The difference between a company's current assets and its current liabilities.