Of the Following Organizations, Activity-Based Costing (ABC) Cannot Be Used

question 52

Multiple Choice

Of the following organizations, activity-based costing (ABC) cannot be used by:

• A) manufacturers.
• B) financial-services firms.
• C) book publishers.
• D) hotels.
• E) None of these are correct, as all these organizations can use ABC.

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Definitions:

Replacement

The act of substituting a person or thing with another person or thing that serves the same purpose or function.

Restitution

The act of compensating for loss, damage, or injury; in legal contexts, it often refers to returning the victim to their original position before the harm occurred.

Quasi Contract

A legal concept where a court enforces an obligation between two parties who have not agreed to an actual contract, to prevent one party from being unjustly enriched.

Oral Contracts

Agreements between parties that are made verbally and not memorialized in writing, yet are still legally binding in many cases.