The Goal of Activity-Based Costing Is

question 11

Multiple Choice

The goal of activity-based costing is

• A) Allocate costs to products
• B) Trace costs to activities and activities to products
• C) Produce more accurate financial statements
• D) Ensure proper stewardship of resources

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Definitions:

Straight Rebuy

A purchasing situation in which a company reorders an existing product or service from a list of acceptable suppliers without modifications.

Modified Rebuy

A buying situation in which an organization makes some changes to the specifications, prices, terms, or suppliers when repurchasing a product.

Online Auction

A digital platform where goods or services are sold through bidding, allowing users to submit competitive bids until the auction time expires.

Independent E-marketplaces

Online platforms that connect buyers and sellers from various industries, allowing them to conduct transactions without traditional intermediaries.