A System That Focuses on Activities as the Fundamental Cost

question 137

Multiple Choice

A system that focuses on activities as the fundamental cost object and uses the costs for these activities to compile indirect costs of goods and services is:

• A)appraisal costs.
• B)activity-based costing.
• C)value engineering.
• D)prevention costs.

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Definitions:

Supervision

The action or process of watching and directing what someone does or how something is done, typically in a professional setting.

Bureaucratic

Referring to a system of administration marked by strict policies, procedures, and hierarchy, often leading to delays and inflexibility.

Organic

A form of organizational structure characterized by flexibility, decentralized decision-making, and a broad scope of operations.

Decentralized

Describes organizations or systems where decision-making powers are distributed among various levels or departments rather than being concentrated in a single point of authority.