Why Are the Benefits of Adopting ABC/ABM Higher for Companies

question 76

Multiple Choice

Why are the benefits of adopting ABC/ABM higher for companies in competitive markets?

• A) Because ABM can pinpoint opportunities for cost savings
• B) Because accounting /information system expertise is inexpensive to develop
• C) Because accurate product cost information is not as relevant for price setting
• D) Because companies in competitive markets have low indirect costs

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Definitions:

Moral Argument

A moral argument is a rationale based on ethical principles, aiming to determine right from wrong or justify moral judgments and behaviors.

Political Argument

A discussion or debate involving opposing viewpoints or perspectives on issues related to governance, policies, or political ideologies.

Minimum Wages

The lowest legal hourly pay that workers can be paid, set by government legislation.

Equilibrium Wage

The wage rate at which the quantity of labor demanded by employers equals the quantity of labor supplied by workers.