In an Activity-Based Costing (ABC)system,a Cause-And-Effect Relationship Is Known as a

question 73

Multiple Choice

In an Activity-Based Costing (ABC) system,a cause-and-effect relationship is known as a

• A)cost stimulator.
• B)overhead stimulator.
• C)cost driver.
• D)cost catalyst.

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Definitions:

Descriptive Theory

A theory that aims to accurately describe how certain phenomena occur or exist in reality.

Discrepancy

A divergence or difference between two or more items, situations, or values, often leading to a realization of a problem or a gap that needs addressing.

Effective

The degree to which something achieves its intended result, outcome, or goal with a minimum of wasted effort or expense.

Prescriptive Theories

Prescriptive theories offer specific recommendations or guidelines for actions, aiming to produce desired outcomes based on established principles or empirical findings.