Activity-Based Management (ABM)uses Activity-Based Costs to Make Decisions That Increase

question 20

True/False

Activity-based management (ABM)uses activity-based costs to make decisions that increase profits while meeting customer needs.

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Definitions:

Philanthropic Gift

A donation made by an individual or an organization to a nonprofit entity, typically for charitable purposes or to support a cause.

Government Grant

financial awards given by governmental bodies to organizations, institutions, or individuals for specific purposes, usually without the expectation of repayment.

Quasi-Endowment Funds

Funds set aside by an organization, often a nonprofit or educational institution, to function like an endowment but which can be accessed under certain conditions, as determined by its governing body.

Operating Reserves

Financial assets set aside by an organization to cover unexpected shortfalls or emergencies, ensuring financial stability and operational continuity.