The Primary Weakness with Traditional Activity-Based Costing That Relies on Time

question 5

True/False

The primary weakness with traditional activity-based costing that relies on time estimates to determine cost per output is employees routinely over-estimate the percentage of time they spend on productive activities.

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Definitions:

Job Involvement

The degree to which an individual is engaged and finds significance in their job.

Promotability

The potential or suitability of an individual to be moved to a higher position or rank within an organization.

Underlying Tendency

The inherent inclination or predisposition towards a particular behavior, pattern, or outcome, often within a psychological or sociological context.

Locus of Control

A psychological concept that refers to how strongly people believe they have control over the situations and experiences that affect their lives.