Activity Based Costing (ABC) Systems Are Less Useful Than the Theory

question 54

True/False

Activity based costing (ABC) systems are less useful than the theory of constraints (TOC) for long-run pricing, cost control, and capacity management.

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Definitions:

Evoked Set

The group of brands or products an individual considers as options in a purchase decision.

Inept Set

A group of products or brands a consumer is aware of but deliberately chooses to avoid.

Heuristic

A problem-solving strategy that employs a practical approach or shortcut, which is not guaranteed to be perfect, but sufficient for reaching an immediate goal.

Search Activity

The process of looking for or exploring information, products, or services, motivated by various needs or goals.