When Comparing Activity-Based Costing (ABC) and the Theory of Constraints

question 67

Multiple Choice

When comparing Activity-based costing (ABC) and the Theory of Constraints (TOC) , the approach each method takes toward profitability analysis is:

• A) TOC takes a short-term approach and ABC takes a long-term approach.
• B) TOC takes a long-term approach and ABC takes a short-term approach.
• C) Both TOC and ABC take a short-term approach.
• D) Both TOC and ABC take a long-term approach.

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Definitions:

Industrialized Countries

Nations that are characterized by a significant level of industrial activity, advanced technological infrastructure, and higher living standards compared to developing countries.

Substage

A division or phase within a larger stage of development or process, often used in developmental psychology to describe steps in cognitive growth.

Sensorimotor Period

A stage in Piaget's theory of cognitive development, from birth to about 2 years, where infants learn through interacting with the environment.

Windup Toy

A mechanical toy that is powered by a spring, which is wound by hand to generate movement.