ABC Systems Seek a Cost Allocation Base That Has a Cause-And-Effect

question 81

True/False

ABC systems seek a cost allocation base that has a cause-and-effect relationship with costs in the cost pool.

---

Definitions:

Work Process

The sequence of activities or tasks that are conducted to achieve a specific outcome or product in an organizational setting.

Workforce Reduction

Strategies employed by organizations to decrease the number of employees, typically through layoffs, voluntary retirement, or attrition, to reduce costs or adjust to structural changes.

Downsizing

The act of reducing the size of a company by eliminating staff positions in an effort to decrease costs and improve operational efficiency.

Systematic Change

A planned and structured approach to change that affects the entire organization or significant parts of it, rather than being unplanned or isolated.