In General, the Risk of Measurement Error in an ABC

question 6

Multiple Choice

In general, the risk of measurement error in an ABC system increases when:

• A) Costs are traced rather than allocated
• B) Managers are uncertain about the relationship between costs and cost pools
• C) The number of cost pools decreases
• D) A company uses a team approach to systems design

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Definitions:

Behavior Consequence

The outcome or result of an action, which can either reinforce the behavior or deter it in the future.

Reinforcement

A psychological principle involving the use of rewards or punishments to increase or decrease the likelihood of a particular behavior.

Aversive Event

An unpleasant or undesirable occurrence that can lead to changes in behavior or psychological state.

Social Learning Theory

A theory that suggests people learn new behaviors through observational learning of others' actions and consequences.