Which of the Following Statements Does NOT Describe an ABC

question 80

Multiple Choice

Which of the following statements does NOT describe an ABC system?

• A) ABC systems can create more accurate product costs.
• B) ABC systems may only be used by service companies.
• C) ABC systems are more complex and costly than traditional costing systems.
• D) ABC systems are used in both manufacturing and non manufacturing companies.

Identify and describe accounting assumptions, conventions, and principles.

Understand key financial metrics and their implications for company performance.

Differentiate between the conceptual frameworks of IASB/FASB and FASB in terms of qualitative characteristics.

Comprehend the primary user groups and constraints in financial reporting as identified by IASB and FASB.

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Definitions:

Problem-solution

A marketing strategy that illustrates a problem faced by the target audience and demonstrates how the company's product or service offers an effective solution.

Technical Product

A product characterized by specialized features, requiring specific knowledge or expertise to use effectively.

Corporate Insurance

A type of insurance designed to protect businesses from potential losses due to unforeseen circumstances, including property damage, liability claims, and business interruption.

Problem-solution

rephrased: An approach that involves identifying a specific issue and subsequently proposing one or more solutions to address that issue, widely used in sales, engineering, and policy-making.