Which of the Following Statements Is True of ABC Systems

question 113

Multiple Choice

Which of the following statements is true of ABC systems?

• A) ABC systems provide less insight than traditional systems into the management of the indirect costs.
• B) ABC systems are used by managers for strategic decisions rather than for inventory valuation in merchandising companies.
• C) Service companies find great value from ABC because a vast majority of their cost structure is composed of direct costs.
• D) ABC systems is valuable for pricing decisions but not for understanding, managing, and reducing costs in government institutions.

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Definitions:

Ronald Reagan

The 40th President of the United States (1981-1989) known for his conservative policies, economic initiatives dubbed "Reaganomics," and a strong stance against the Soviet Union during the Cold War.

Reagan Doctrine

A strategy implemented by the U.S. during the Reagan administration to oppose the global influence of the Soviet Union, often through indirect support of anti-Communist groups.

Military Superiority

The state of having a stronger and more efficient military force than an adversary.

Anti-Communism

Opposition to communism, characterized by its critique of communist ideology, economies, and governments, often manifested during the Cold War era.