An ABC System Is One Building Block of Activity-Based Management

question 115

Multiple Choice

An ABC system is one building block of activity-based management (ABM) .The second building block is

• A)that senior management support is crucial.
• B)understanding the components of indirect cost pools.
• C)knowing the limitations of allocating indirect costs.
• D)the ability for managers to understand that the demand for output is central to profitability.
• E)automating the costing system.

---

Definitions:

Validity

The accuracy of a given measurement.

Consistency Result

Consistency result describes a situation in logic or mathematics where a set of statements or equations do not contradict each other and can coexist without generating errors.

Secondary Analysis

A research method involving analysis of existing data.

Code Analyze

The examination and evaluation of source code to identify errors, improve efficiency, and ensure that it meets all the necessary requirements or standards.