Which of the Following Is a Sign That an ABC

question 110

Multiple Choice

Which of the following is a sign that an ABC system may be useful?

• A)There are small amounts of overhead costs.
• B)Products make diverse demands on resources because of differences in volume, process steps, batch size, or complexity.
• C)Products a company all show large profits.
• D)Operations throughout the plant are fairly similar.

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Definitions:

Cash Discount

A reduction in invoice price given by a seller to a buyer in return for early payment, aimed at accelerating cash inflows.

Standard Practices

Established and widely accepted methods or procedures used in a field or industry.

Finance Charge

The cost associated with obtaining credit, including interest, fees, and other charges.

Financing Charge

An interest or fee paid for the use of borrowed money.