A Key Reason for Using an ABC System Rather Than

question 38

Multiple Choice

A key reason for using an ABC system rather than a conventional cost system is because ABC assigns overhead costs:

• A)because they are indirect costs.
• B)more simply than a traditional cost system.
• C)based only on transaction drivers.
• D)to reflect differences required by different activities as well as customers.

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Definitions:

Services Marketing

The approach to marketing focused on selling services as opposed to tangible products, addressing the unique challenges of service promotion, delivery, and quality management.

Product Marketing

refers to the process of promoting and selling a product to the consumer, encompassing strategies and tactics used to identify the product's target market, communicate its value, and ensure its distribution.

Stock Brokerage

Firms that act as intermediaries between investors and securities exchanges, facilitating the buying and selling of stocks.

People Management

The practice of recruiting, training, and overseeing employees in a workplace to maximize their performance.