An Important Assumption in Using ABC Is That

question 125

Multiple Choice

An important assumption in using ABC is that

• A) production must take place on a continuous basis.
• B) all costs in an activity should respond proportionately to changes in the activity level of the cost driver.
• C) production must take place on a just-in-time basis.
• D) all costs are pushed through each process when customer orders are received.

Recognize how transactions affect account balances within the double-entry accounting system.

Analyze the impact of transactions on a company’s financial statements.

Interpret the function and organization of a chart of accounts.

Distinguish between prepaid expenses, unearned revenues, and notes payable.

---

Definitions:

Disgust

A strong feeling of aversion or profound disapproval.

Giggles

Sudden bursts of short, high-pitched laughs, often uncontrollably and triggered by amusement or nervousness.

Caregivers

Individuals who assist others with their personal needs and tasks, especially due to age, illness, or disability.

Positive Relationship

A connection between individuals characterized by mutual respect, trust, and support, leading to beneficial outcomes for the parties involved.