A Traditional Costing System Has Fewer Cost Pools That Does

question 173

True/False

A traditional costing system has fewer cost pools that does an activity-based costing (ABC)system.

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Definitions:

Generates Revenues

The process through which a business earns income from its normal operations, typically through the sale of goods and services.

Profit Center

A unit or department that incurs costs and generates revenues.

Revenue Center

A division or unit within a business responsible for generating significant income.

Departmental Reports

Internal documents that break down business performance by departments, aiding in analyzing specific areas of a company.