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.

Understand the concept of returns to scale and its impact on production and cost.

Calculate input ratios and optimal bundle selections under different pricing scenarios.

Assess how firms adjust production methods in response to changes in input costs.

Understand and correctly identify abbreviations and full forms related to medical oncology.