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Why would a firm use activity-based costing (ABC) rather than traditional methods of cost allocation for overhead?
Quick Ratio
A measure of a company's capacity to meet its short-term liabilities with its most liquid assets.
Liquidity Ratio
A financial metric used to determine an entity's ability to pay off its short-term debts with its most liquid assets, indicating financial health.
Current Ratio
A financial metric indicating a firm's capacity to meet its immediate financial liabilities with its present assets.
Net Cash
The amount of cash available after deducting liabilities, often considered in evaluating a company's liquidity.
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