The Activity-Based Costing System Improves the Allocation of ________

question 22

Multiple Choice

The activity-based costing system improves the allocation of ________.

• A) indirect manufacturing costs
• B) direct labor
• C) direct materials
• D) sales commissions

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Definitions:

Customer Needs

The recognized necessities or desires that drive consumers to seek out products or services for satisfaction or solution.

Value Chain Analysis

A strategic tool used to analyze the activities that create value in a business, from conceptualization to delivery to consumers.

Portfolio Analysis

Involves evaluating the collection of businesses, investments, or financial assets held by an individual or corporation to determine their performance and strategic fit.

Pricing Matrix

A structured plan that outlines different price levels for a product or service based on various factors, such as market demand, competition, and cost of production.