Activity-Based Costing Is Similar to Duration Analysis

question 64

True/False

Activity-based costing is similar to duration analysis. While duration analysis attempts to find the time taken to complete business processes, activity-based costing finds the costs associated with each of the basic functional steps or processes.

---

Definitions:

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Demand Equation

A mathematical representation of the relationship between the quantity of a good demanded and various factors affecting it such as price, income, and the price of related goods.

Downsloping Demand

A concept in economics that describes the inverse relationship between the price of a good and the quantity demanded, typically illustrated by a downward-sloping demand curve.

Upsloping Supply

A supply curve that shows an increase in the quantity supplied as the price increases, typical of most goods.