All of the Following Are Objectives of Activity-Based Cost (ABC)

question 34

Multiple Choice

All of the following are objectives of activity-based cost (ABC) accounting in government except:

• A) To preserve, at a minimum, the present quality and availability of services.
• B) To help find lower cost alternatives to providing services.
• C) To link customer (taxpayer) satisfaction to improvements in the operating systems used to provide goods and services.
• D) To make increases in the volume of services dependent on reducing costs.

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Definitions:

Lending

The act of providing funds to another party with the expectation that the funds will be repaid, often with interest, over a specified period of time.

Excess Reserves

Funds that banks hold over and above the legal requirements, which can influence their ability to lend.

Deposits

Funds placed into an account at a financial institution for safekeeping and to earn interest.

Excess Reserves

Excess reserves are the funds that banks hold over and above the required minimum reserves mandated by central banking regulations, often stored in central banks.