Your Text Notes That Technology Has Helped to Shift the Balance

question 138

Multiple Choice

Your text notes that technology has helped to shift the balance of power from companies to customers. Which statement exemplifies this concept?

• A)The Internet allows companies to advertise on more than one platform.
• B)Companies can use social networking sites to help them better target their audiences.
• C)The Internet has made it possible for customers to comparison shop for products.
• D)Data gathered at the point-of-sale can be used by companies to target customers for new products.
• E)Automated production systems lead to more efficient and cost-effective manufacturing processes.

Recognize the importance of accurate cost allocation in activity-based costing and its impact on product costing and decision making.

Identify different types of activities (unit-level, batch-level, product-level, and organization-sustaining) and their role in costing.

Understand the process of setting up and implementing an ABC system, including first-stage and second-stage allocations.

Appreciate the importance of manager and departmental involvement in the ABC implementation process.

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Definitions:

Major Components

The primary or most important parts that make up a system, structure, or entity.

Benchmarking

The practice of comparing business processes and performance metrics to industry bests and best practices from other companies.

External Comparisons

External Comparisons involve evaluating an organization's performance, practices, or conditions against those of other organizations, often within the same industry, to gauge relative performance, identify best practices, and highlight areas for improvement.

Internal Benchmarking

The practice of comparing an organization's processes and performance metrics to its own operations or departments over time.