In an ABC System, a Cost Driver Must Be Chosen

question 50

Multiple Choice

In an ABC system, a cost driver must be chosen for each:

• A) Activity
• B) Cost pool
• C) Cost object
• D) Unit-level activity

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Definitions:

Frequency of Sales Calls

The number of times sales representatives contact prospects or customers within a given period to promote their products or services.

Development Sales Territories

The process of organizing and dividing a geographical area or market into specific segments or territories for more efficient sales management and targeting.

Inefficient

Lacking in effectiveness or the ability to produce a desired outcome without wasting materials, time, or energy.

Networking

The act of interacting with others to exchange information and develop professional or social contacts.