All of the Following Describe an ABC System Except

question 105

Multiple Choice

All of the following describe an ABC system except

• A)ABC systems may only be used by service companies.
• B)ABC systems can create more accurate product costs.
• C)ABC systems are more complex and costly than traditional costing systems.
• D)ABC systems are used in both manufacturing and nonmanufacturing companies.

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Definitions:

Outsourcing

The practice of hiring third parties to perform services or create goods that were traditionally done in-house, often to save costs or tap into specialized expertise.

Labor Surplus

A situation in the labor market where the supply of labor exceeds the demand for labor, often leading to unemployment or decreased wages.

Reduced Work Hours

An employment arrangement where the number of hours worked is less than the standard full-time schedule, often to promote work-life balance.

Demotions

The action of lowering someone's rank or position, often as a disciplinary measure or due to organizational restructuring.