Which of the Following Statements Concerning an Activity-Based Cost (ABC)system

question 45

Multiple Choice

Which of the following statements concerning an activity-based cost (ABC) system is(are) correct?

• A)ABC analysis illuminates exactly what activities are associated with a particular product or customer segment and how these activities are linked to the generation of revenues and the consumption of resources.
• B)ABC analysis often relies on percentage allocations that are somewhat arbitrary.
• C)ABC analysis segregates the expenses of indirect and support resources by activities.
• D)all of the above
• E)(a)and (c)only

---

Definitions:

Retrenchment

A strategy used by organizations to reduce their scale or scope in response to financial pressures, often involving cost-cutting measures and reductions in workforce.

Organizational

Relating to the structure or functioning of an organization or the collective group organized for a particular purpose.

Operational

Pertaining to the daily activities and functions necessary for an organization or system to run efficiently and effectively.

State of Crisis

A situation or period in which an organization or community faces significant challenges or threats that require immediate and effective response.