A System That Focuses on Activities as the Fundamental Cost

question 179

Multiple Choice

A system that focuses on activities as the fundamental cost object and uses the costs for these activities to compile indirect costs of goods and services is

• A) appraisal costs.
• B) activity-based costing.
• C) value engineering.
• D) prevention costs.

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Definitions:

School Sports Teams

Organized groups of students who represent their school in various sports competitions.

Long-term Fixed Pricing

A pricing strategy where the seller sets a specific price for a product or service that does not change over a long period, offering stability to both the seller and the buyer.

McClelland's Three Needs

A theory of motivation that highlights three primary needs influencing human behavior: the need for achievement, the need for affiliation, and the need for power.

Maslow's Hierarchy

a psychological theory proposed by Abraham Maslow that categorizes human needs into five levels, from basic physiological needs to self-actualization.