When Implementing an ABC System, the Accounting Information System May

question 88

Multiple Choice

When implementing an ABC system, the accounting information system may require modifications to

• A) Include fewer ledger accounts:
• B) Include only costs from the most recent periods
• C) Gather and report activity and cost driver information
• D) Include more ledger accounts

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Definitions:

GDP Deflator

The GDP deflator is an economic metric that converts the current prices of all goods and services produced in an economy to constant prices, allowing for inflation adjusted comparisons.

Real GDP

The calculation of a nation's economic production taking into account adjustments for variations in prices and inflation, revealing the actual value of goods and services generated.

Percentage Change

A mathematical calculation that represents the degree of change over time as a proportion of the original value, often used to measure growth or decline.

GDP Deflator

A gauge for pricing of all new, native-produced, conclusive goods and services within an economy, applied to revise nominal GDP in order to compute real GDP.