Which of the Following Is Not a Benefit of an ABC

question 32

Multiple Choice

Which of the following is not a benefit of an ABC system?

• A) Helping managers focus on measurement at the activity level
• B) Increasing profits
• C) Improving accuracy in cost measurement
• D) Motivating employees to find ways to improve performance

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Definitions:

Individual Choices

Decisions made by individuals based on their preferences and circumstances, affecting their personal welfare and the allocation of resources.

Incentives

Financial or non-financial rewards designed to encourage specific behaviors or actions from individuals or entities.

Opportunities

Opportunities refer to favorable situations or conditions that could lead to the achievement of goals or the advancement in a certain area, often requiring timely and strategic action to capture.

Equity

Fairness or justice in the way people are treated within the economy, often in terms of the distribution of wealth.