Advantages of the Time-Driven ABC Model Include All of the Following

question 99

Multiple Choice

Advantages of the time-driven ABC model include all of the following except:

• A)cost-driver rates change when there has been a shift in the efficiency of the activity.
• B)cost-driver rates can be easily updated.
• C)complex assumptions reflect the manufacturing environment.
• D)data used are easily observed.

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Definitions:

Initial Investment

The initial amount of money invested in a project, asset, or business at the start.

Annual Returns

Annual returns are the percentage change in an investment's value over a year, including interest, dividends, and capital gains.

Annual Payments

Payments that are made once a year for various purposes, such as loan repayments, insurance premiums, or leases.

Note Payable

A written agreement where a borrower promises to pay back a certain sum of money to a lender at a future date, often with interest.