Which of the Following Statements Best Describes the Major Difference

question 15

Multiple Choice

Which of the following statements best describes the major difference between activity-based costing (ABC) and activity-based management (ABM) ?

• A)ABC is only used in manufacturing companies,and ABM is only used in service companies.
• B)ABC is used in managerial accounting,and ABM is used in financial accounting.
• C)The goal of ABC is to accurately measure costs,and the goal of ABM is to manage costly activities.
• D)ABC is only used in service companies,and ABM is only used by merchandising companies.
• E)None of the answer choices is correct.

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Definitions:

Oxy-acetylene Torch

A tool that mixes oxygen and acetylene gas to produce a very hot flame, used for welding and cutting metals.

Main Spring

The primary spring in a mechanical system, providing the chief source of motion or force.

Governor Adjusting Screw

A component used to adjust the governor in engines or machinery, controlling the maximum speed or maintaining a consistent speed.

Governor Spring Pressure

The force exerted by a spring inside a governor mechanism, which helps in regulating the speed or fuel supply in an engine or mechanical system.