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Uncertainties Associated with ABC and ABM Include

question 95

Multiple Choice

Uncertainties associated with ABC and ABM include:
I. The appropriate choice of activities
II. The appropriate choice of cost drivers
III. Employee response to the system


Definitions:

Efficient Tax System

A tax system designed to collect government revenue with minimal economic distortion and without imposing excessive administration and compliance costs.

Deadweight Losses

Economic inefficiencies that occur when equilibrium in a market is not achieved, often due to government intervention like taxes or subsidies.

Administrative Burdens

The costs and obstacles associated with compliance to governmental policies and regulations.

Economy's Income

The total value of all earnings obtained by individuals, businesses, and government entities within an economy over a specific period, often measured as Gross Domestic Product (GDP).

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