Under the ABC Philosophy

question 23

Multiple Choice

Under the ABC philosophy

• A) all inventories should be reduced or eliminated.
• B) the push approach should be used in the first department of a process and the pull approach should be used in all subsequent departments.
• C) the cost of a product is equal to the sum of the costs of all activities performed to manufacture it.
• D) only one cost driver can be used.

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Definitions:

Standard Deviation

A parameter that indicates the level of dispersion or variability within a collection of data points.

Data

Factual information, especially measurements or research results, used as a basis for reasoning, discussion, or calculation.

Standard Deviation

An indicator that quantifies the extent of spread or deviation of a collection of values from their average.

Data

Information collected for reference or analysis, which can be qualitative or quantitative in nature.