In Activity Based Costing Systems, Limiting Cost-Allocation Bases to Only

question 95

True/False

In activity based costing systems, limiting cost-allocation bases to only units of output strengthens the cause-and-effect relationship between the cost-allocation base and the costs in a cost pool.

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Definitions:

Task Analysis

The process of breaking down a task into its individual components to better understand, teach, or improve it, different from Cognitive Task Analysis as it may focus more broadly on physical and procedural tasks.

Organizational Analysis

The process of reviewing the development, work environment, personnel, and operation of a business or another type of association.

Strategic Direction

Guidance for an organization on its long-term goals and the strategies to achieve them, often set by top management.

Job Performance

The level of effectiveness and efficiency with which an employee accomplishes their work tasks and responsibilities.