Which of the Following Is a Sign That an ABC

question 8

Multiple Choice

Which of the following is a sign that an ABC system may be useful for an organization?

• A) Significant amounts of indirect costs are allocated using multiple cost pools.
• B) Products make similar demands on resources because of similarities in volume, process steps, batch size, or complexity.
• C) Many indirect costs are described as batch-level costs, product-sustaining costs, or facility-sustaining costs.
• D) Operations staff disagrees with accountants about the costs of manufacturing and marketing products and services.

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Definitions:

Task-Focused

Oriented towards completing tasks and achieving specific objectives, often with an emphasis on efficiency and productivity.

Employees

Individuals who are hired by others to perform specific jobs in exchange for compensation.

Individual Level

Pertaining to or focusing on a single person, as opposed to a group or organizational perspective.

Class Discussion

An educational technique that involves an organized debate or dialogue among students in a classroom guided by a teacher to enhance learning through shared ideas.