Using the SAP Financials Segment Requires That a Firm Adopt

question 22

True/False

Using the SAP Financials segment requires that a firm adopt Activity-Based Costing (ABC).

---

Definitions:

Carrying Cost

The total cost of holding inventory, including storage, insurance, and taxes, among other expenses.

Fixed Cost

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Product

Anything that can be offered to a market to satisfy the desire or need of a customer.

Average Collection Period

The average number of days it takes for a business to collect payments from its customers after a sale has been made.