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:

Craft Product

An item that is made traditionally by hand, or with minimal mechanization, often emphasizing quality and uniqueness.

Art Product

A creation resulting from artistic activities, such as paintings, sculptures, or design pieces, intended for aesthetic appreciation or cultural significance.

Cultural Formulas

Predefined, widely recognized patterns or themes in media and literature that are replicated because they resonate with cultural norms and values.

Late Majority

A segment of technology adoption lifecycle that represents consumers who are skeptical and adopt new products or technologies after the average member of society.