The Process of Using Activity-Based Costing Information to Manage a Business's

question 153

Essay

The process of using activity-based costing information to manage a business's activities, and its costs, is called activity-based management.How do managers use the information provided by an activity-based costing system?

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Definitions:

Positive Reinforcement

A behavioral strategy involving the addition of a rewarding stimulus following a desired behavior, thereby increasing the likelihood of that behavior being repeated.

Negative Reinforcement

The strengthening of a response by the removal of an aversive stimulus.

Human Nature

the inherent characteristics, behaviors, and tendencies that are considered typical of all humans.

Token Economy

A behavior modification system based on the systematic reinforcement of target behavior through the distribution and exchange of tokens that can be exchanged for desired incentives.