Which of the Following Statements Is True of ABC Systems

question 113

Multiple Choice

Which of the following statements is true of ABC systems?

• A) ABC systems provide less insight than traditional systems into the management of the indirect costs.
• B) ABC systems are used by managers for strategic decisions rather than for inventory valuation in merchandising companies.
• C) Service companies find great value from ABC because a vast majority of their cost structure is composed of direct costs.
• D) ABC systems is valuable for pricing decisions but not for understanding, managing, and reducing costs in government institutions.

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Definitions:

Loyal Customers

are consumers who consistently prefer and purchase a particular brand or product over time, often due to satisfaction, personal identification, or perceived value.

Branded House

A branding strategy where a company uses its corporate brand to cover all its products and services, promoting a single, unified brand identity.

Cross Sell

A sales strategy that encourages customers to purchase additional, complementary, or related products or services to those they are already buying.

Endorsement Strategies

The use of famous or influential individuals to promote a product, brand, or cause, leveraging their credibility and appeal.