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.

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Definitions:

Standard Deviation

A statistical measurement that sheds light on the dispersion of a dataset, indicating how much individual data points differ from the mean.

Error Relative

A measure of the difference between an observed or calculated value and the true value, often expressed as a percentage.

Causal Forecasting Methods

Forecasting techniques that assume relationships between the item being forecasted and other variables, such as promotional campaigns or economic conditions, to predict future trends.

Environment Factors

External elements, such as regulatory, social, economic, and ecological conditions, that can influence a company's operations and strategic decisions.