An Adaptation of ABC Costing That Simplifies ABC by Assigning

question 93

Multiple Choice

An adaptation of ABC costing that simplifies ABC by assigning resource costs directly to cost objects is called:

• A)Activity analysis.
• B)Multistage ABC.
• C)Time-Driven ABC.
• D)Resource Consumption Accounting.
• E)Customer profitability analysis.

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Definitions:

Capital Budgeting

The process of planning and managing a company’s long-term investments in projects or assets.

Technical Inputs

Elements related to the technological aspects of a project or system, including machinery, design parameters, and software requirements that contribute to its overall functionality and efficiency.

Time Value

The idea that money currently in hand is more valuable than an identical sum received later, because of its ability to earn more over time.

Relevant Cash Flow

Cash flows that will occur as a direct result of a decision made by a business, essential in capital budgeting and investment analysis.