ABC Is Generally More Costly to Implement Than Traditional Costing

question 81

True/False

ABC is generally more costly to implement than traditional costing.

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Definitions:

Machinery

Mechanical devices or machines collectively, especially those used in industries or agriculture to aid in production processes.

Utilization Rate

The percentage of capacity or resources that are being used effectively in operations.

Manufacturing Capacity

The maximum amount of products a factory can produce over a specific period, taking into account the physical space, machinery, and labor available.

Quality Rate

An indicator or metric that measures the quality of products, services, or processes, often expressed as a percentage.