Managers Are Most Likely to Identify Activities in an ABC

question 77

Multiple Choice

Managers are most likely to identify activities in an ABC system by:

• A) Examining the financial statements
• B) Forecasting market demand using the high-low method
• C) Consulting employees
• D) Tracking general ledger account balances

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Definitions:

Useful Life

Useful life is the estimated duration a fixed asset is expected to be economically usable, affecting its depreciation calculation and financial planning.

Injection Mold

A manufacturing process in which molten material is injected into a mold to produce parts or products of specific shapes and sizes.

Value-based Pricing

A pricing approach that sets the cost of a product or service according to its perceived worth to the consumer, rather than the expenses involved in its creation.

Preventive Maintenance

Scheduled maintenance on equipment or systems aimed at preventing unexpected failures or extending their life.