Why Would a Firm Perform ABC Cost Analysis

question 79

Multiple Choice

Why would a firm perform ABC cost analysis?

• A)to identify the best inventory supplier
• B)to reconcile accounts payable
• C)to prioritize physical inventory counts
• D)to verify production quality

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Definitions:

Declaration Date

The Declaration Date is the date on which a company's board of directors announces its next dividend payment, specifying the dividend's size, ex-dividend date, and payment date.

Dividend

A portion of a company's earnings that is paid to shareholders, usually on a quarterly basis, as a reward for owning the stock.

Liability

A company's financial debt or obligations that arise during the course of its business operations, required to be settled over time.

Stock Split

A corporate action that increases the number of shares in a company, leading to a decrease in the price per share while keeping the market capitalization the same.