Recognizing ABC Information Is Not Always Perfect Because ________

question 30

Multiple Choice

Recognizing ABC information is not always perfect because ________.

• A) it mostly uses far too many indirect cost pools than what is actually required
• B) it balances the need for better information against the costs of creating a complex system
• C) it lacks the simplicity that traditional systems used to have to allocate overhead costs
• D) it never measures how the resources of an organization are used

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Definitions:

FR(%)

A term that does not appear to match standard key terms used in inventory management, production, or finance. NO.

MTBF

Mean Time Between Failures, a measure of reliability for a system, indicating the average time between failures.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from their mean.

Preventive Maintenance

Scheduled maintenance activities conducted on equipment before faults occur in order to prevent breakdowns and minimize downtime.