Why Are More Organizations Adopting Activity-Based Costing Systems

question 55

Multiple Choice

Why are more organizations adopting activity-based costing systems?

• A) Computer technology has increased the costs of developing and operating ABC systems.
• B) Indirect costs are more important in automated manufacturing environments.
• C) Less competition.
• D) Less diversity in product mix offered to customers.

---

Definitions:

Self-Serving Bias

A common tendency to attribute success to personal characteristics and failures to external factors for self-enhancement.

Actor-Observer Bias

A cognitive bias where individuals attribute their own actions to external situations while attributing others' actions to their personalities or dispositions.

Defensive Attribution

A psychological process by which individuals tend to attribute causes for successes and failures in a way that protects self-esteem.

Warm and Responsive

Warm and responsive describes a caregiving approach that is emotionally supportive and attuned to the needs of others.