Implementing Activity Based Costing (ABC)has a Direct Impact on Reducing

question 167

True/False

Implementing activity based costing (ABC)has a direct impact on reducing overhead in an organization.

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Definitions:

Cross Elasticity

An indicator of the sensitivity in demand for a certain product in response to price fluctuations of a different product.

Percentage Change

A mathematical calculation that shows how much a number has increased or decreased compared to its previous value, expressed as a percentage.

Complementary Goods

Goods and services that are used together; when the price of one falls, the demand for the other rises (and conversely).

Inelastic

A term describing demand when it changes by a smaller percentage than changes in price.