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:

Inelastic Supply

A situation where the quantity supplied of a good or service is relatively unresponsive to changes in its price.

Labor Supply

The total hours that workers in an economy are willing to work at a given real wage rate.

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides retirement, disability, and survivors' benefits.

Labor

The human effort, both physical and mental, used in the production of goods and services, considered one of the main factors of production.