ABC Reveals Opportunities to Reduce Costs on Nonvalue Added Activities

question 22

True/False

ABC reveals opportunities to reduce costs on nonvalue added activities.

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Definitions:

Personnel Expenses

Costs associated with employing staff, including wages, benefits, and training costs.

Planning Budget

A financial plan that estimates the revenue and expenses for a specific period in the future, often used for setting financial goals.

Administrative Expenses

Overhead costs related to the general operation of a company, such as salaries of executive personnel, office supplies, and utilities.

Planning Budget

A budget designed for a specific level of activity, used for planning and control purposes.