All of the Following Are Objectives of Activity-Based Cost (ABC)

question 34

Multiple Choice

All of the following are objectives of activity-based cost (ABC) accounting in government except:

• A) To preserve, at a minimum, the present quality and availability of services.
• B) To help find lower cost alternatives to providing services.
• C) To link customer (taxpayer) satisfaction to improvements in the operating systems used to provide goods and services.
• D) To make increases in the volume of services dependent on reducing costs.

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Definitions:

Elastic Demand

A market condition where the quantity demanded of a product or service significantly changes in response to changes in price.

Volume of Units

The total number of individual items or products produced or sold by a company.

Price Change

An adjustment in the selling price of a product or service, which can be either an increase or decrease due to various factors like cost, demand, or competition.

Absorption Costing

A method of costing that includes all manufacturing costs, both fixed and variable, in the cost of a product.