Activity-Based Costing (ABC) Enables Managers and Auditors to Directly Link

question 7

Multiple Choice

Activity-based costing (ABC) enables managers and auditors to directly link the costs of program resources to the objects produced, whether the objects are products or services. In addition, activity-based costing can be used to obtain cost information to use in the following ways:

• A) Fee setting - government organizations often develop fee or payment schedules for units of service.
• B) Making contracting-out decisions - many organizations are attempting to cut costs either by outsourcing various operations or by consolidating services.
• C) All of the above.
• D) None of the above.