Signs That a Product Cost System Is Not Working Properly

question 43

Multiple Choice

Signs that a product cost system is not working properly include

• A) managers don't understand costs and profits.
• B) the cost system was installed five years ago.
• C) the cost system has multiple allocation bases.
• D) the cost system is fully depreciated.

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Definitions:

Similarity

The state of being alike or sharing common features, often leading to attraction or cohesion in social relationships.

Self-Serving Bias

A common tendency to attribute one's successes to personal characteristics and failures to external factors.

Situational Attribution

The process of attributing a person's behavior to external or environmental factors, rather than to internal dispositions.

Self-Fulfilling Prophecy

A belief or expectation that influences a person to act in ways that cause the belief to become true.