Which of the Following Statements Is Characteristic of ABC

question 100

Multiple Choice

Which of the following statements is characteristic of ABC?

• A)A vital attribute of an ABC database is the cost of individual departments.
• B)The ultimate objective of activity classification is to build heterogeneous cost pools.
• C)When unbundling general ledger costs to an ABC database,we are more concerned about "How are the dollars spent?" than "What is spent?"
• D)ABC costs are calculated once used until the product is discontinued.

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Definitions:

Required Return

The minimum return an investor expects to achieve by investing in a particular asset, considering the risk involved.

Customized Machine

A piece of equipment specifically designed and built to meet the unique requirements of a particular business or manufacturing process.

Operating

Pertains to the ongoing, day-to-day activities involved in running a business or an organization.

Marginal Tax Rate

The rate of tax applied to the last dollar of income, used to determine how much tax will be owed on an additional dollar of income.