The Goal of a Properly Constructed ABC System Is To

question 19

Multiple Choice

The goal of a properly constructed ABC system is to:

• A)have the most accurate cost system.
• B)identify more indirect overhead costs.
• C)develop the best cost system for an economically reasonable cost.
• D)have separate allocation rates for each department.

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Definitions:

Research and Development

The iterative process of systematic work undertaken to increase the stock of knowledge and use this knowledge to devise new applications.

Patent Protection

Legal rights granted to inventors that prevent others from making, using, or selling their invention for a certain period of time.

Applied Research

Research aimed at solving practical problems and developing new technologies, as opposed to theoretical or basic research.

Basic Scientific

Refers to fundamental research that aims to increase our understanding of basic principles and facts without immediate practical application in mind.