Why Are More Organizations Adopting Activity-Based Costing Systems

question 60

Multiple Choice

Why are more organizations adopting activity-based costing systems?

• A)Computer technology has increased the costs of developing and operating ABC systems.
• B)Indirect costs are not important in automated manufacturing environments.
• C)Shortened product life cycles.
• D)Less diversity in product mix offered to customers.

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Definitions:

Informal Economy

The informal economy comprises economic activities that are not regulated by the government and are typically not included in a country's gross national product or gross domestic product.

State Gross National Product

The total monetary value of all goods and services produced over a specific time period within a country's borders, including the net income from foreign investments.

Industrial Food Production

The large-scale manufacturing of food products involving standardized and efficient methods, typically involving heavy use of chemical inputs and automation.

Mass Marketing

A strategy that involves targeting a large, broad audience with a single marketing message, often through mediums like television, radio, or online platforms.