Activity-Based Accounting Systems

question 44

Multiple Choice

Activity-based accounting systems

• A) accumulate overhead costs by department.
• B) can turn many indirect overhead costs into direct costs.
• C) are less complex and therefore less costly than traditional systems.
• D) can be used in manufacturing firms only.

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Definitions:

Business Practices

customary, habitual methods of operation that are engaged in by businesses.

Deculturation Strategy

A process of reducing or eliminating the cultural characteristics of a group or society, often in the context of mergers and acquisitions or colonization.

External Environment

Factors outside an organization that can impact its operation, including economic, technological, legal, and cultural elements.

Weak Cultures

Refers to organizational cultures that have loosely defined values and norms, resulting in less uniformity in employee behavior and potentially affecting consistency and performance.