Which of the Following Statements Is True of ABC Systems

question 79

Multiple Choice

Which of the following statements is true of ABC systems?

• A) ABC systems are time-driven cost systems.
• B) ABC systems classify some direct costs as indirect costs and some indirect costs as direct costs.
• C) ABC systems provide valuable information to managers beyond accurate product costs.
• D) ABC systems assume all costs are variable costs.

---

Definitions:

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage.

Equilibrium Interest Rate

The interest rate at which the quantity of money demanded equals the quantity of money supplied, balancing savings and investment.

Loanable Funds

The funds available for borrowing in the financial markets, influenced by savings, government policies, and financial institutions' lending criteria.

Market

The arena in which buyers and sellers come together to trade goods, services, or financial instruments, establishing prices through supply and demand.