What Does the Design of an ABC System Require

question 1

Multiple Choice

What does the design of an ABC system require?

• A)That a cause-and-effect relationship exists between resource costs and individual activities
• B)That the job bid process be redesigned
• C)An adjustment to product mix
• D)Both B and C are correct.

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Definitions:

Strategy

A plan of action designed to achieve a long-term or overall aim, typically involving the allocation of resources and decision-making processes.

Corporate Level

Relating to high-level strategic decisions made at the upper echelons of a business organization.

Top Management

The highest level of executives and decision-makers in an organization, responsible for determining its overarching strategy and policies.

Directive

An authoritative instruction or official order given by a person or body with power.