A Well-Designed ABC System Allows Managers to Identify Unused ________

question 97

Multiple Choice

A well-designed ABC system allows managers to identify unused ________ in each major activity and to estimate its cost.

• A)steps
• B)procedures
• C)processes
• D)capacity

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Definitions:

Normal Balance

The side of an account (debit or credit) that increases. For assets and expenses, it's usually the debit side, and for liabilities, equity, and revenue, it's typically the credit side.

Owner's Capital Account

An equity account representing the total investment of the owner in the business, including initial contributions and subsequent earnings, minus any withdrawals.

Asset Account

Accounts used in accounting to track the value of economic resources owned or controlled by an entity which can provide future benefits.

Trial Balance

A report that lists the balances of all ledger accounts at a specific point in time, used to verify the equality of debits and credits.