The Implications of JIT and Backflush Costing Systems for Activity-Based

question 3

Multiple Choice

The implications of JIT and backflush costing systems for activity-based costing systems include:

• A)more of the costs are direct
• B)overhead cost allocations are reduced
• C)Neither of these answers are correct.
• D)Both A and B are correct.

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Definitions:

Moment-of-truth

Critical points in the service delivery process where customers interact with the service and form impressions about its quality.

Service Provider

An entity that offers services to others, typically in exchange for payment.

Customer's Expectation

The set of beliefs or standards that customers have regarding the level of service or quality of product they will receive from a provider.

Design

The process of conceptualizing and planning the creation of objects, systems, or interactions with specific considerations for function, aesthetics, and usability.