A Well Designed, Activity-Based Cost System Helps Managers Make Better

question 142

Multiple Choice

A well designed, activity-based cost system helps managers make better decisions because information derived from an ABC analysis

• A)can be used to improve the efficiency of activities.
• B)is easy to analyze and interpret.
• C)takes the choices and judgement challenges away from managers.
• D)emphasizes how managers can achieve higher sales.
• E)helps identify trends in the market place.

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Definitions:

Cost Leadership Strategy

A strategy that seeks to operate with low cost so that products can be sold at low prices.

Competitive Advantage

A situation or factor that gives a business an advantageous or superior stance in comparison to its rivals.

Goal Replacement

The process of substituting an existing goal with a new one, often due to changes in priorities, resources, or external circumstances.

Focused Differentiation Strategy

A strategy that offers a unique product to a special market segment.