The Goal of a Properly Constructed ABC System Is To

question 87

Multiple Choice

The goal of a properly constructed ABC system is to:

• A)develop the best cost system by staying within the economizing constraints (relevant benefit versus cost tradeoff for the system).
• B)have the most accurate cost system.
• C)clone the ABC model processes.
• D)adapt the ABC model exactly to the organization.

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Definitions:

Performance Management

A systematic process by which an organization involves its employees in improving effectiveness towards the achievement of the company's goals and objectives.

Business Objectives

The specific goals that an organization strives to achieve over a set period, guiding its operations and strategic direction.

Performance Management Process

A continuous cycle of planning, monitoring, reviewing, and rewarding employee performance towards achieving organizational goals.

Performance Outcomes

The results or outputs of work performance, often measured against pre-established standards or objectives.