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.

---

Definitions:

Performance Appraisals

The systematic evaluation of employees' work performance, typically conducted by supervisors or managers to provide feedback and identify areas for development.

Employees' Performance

The quality and efficiency of work produced by workers, often evaluated to inform improvements and rewards.

Central Tendency Error

The inaccurately concentrated rating of all employees towards the middle of a performance scale, avoiding the extremes of high and low evaluations.

Perceptual Error

A cognitive mistake that occurs when interpreting information about the environment, often leading to inaccuracies in judgment or understanding.