If an Organization Has Implemented an ABC or ABM System

question 170

Multiple Choice

If an organization has implemented an ABC or ABM system, they will already have accomplished which of the following?

• A) Identified the activities within an organization.
• B) Estimated the demand for each activity's output.
• C) Assessed the cost of resources required to produce this activity output.
• D) All of these.
• E) None of these.

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Definitions:

Prevention Costs

Costs incurred to prevent defects before they occur, including costs associated with design, training, and process control.

Appraisal Costs

Expenses associated with measuring, evaluating, or auditing products or services to ensure conformity to quality standards and performance requirements.

Environmental Costs

Environmental costs are expenses associated with the impact of an activity on the environment, including pollution mitigation, resource depletion, and habitat destruction.

Consumer Product Safety Act

A federal law that aims to protect consumers from products that pose fire, chemical, mechanical, or electrical hazards, promoting the safety of consumer products.