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:

Employee Stock Ownership Plan

A program that provides a company's workforce with an ownership interest in the company through the acquisition of stocks.

Stock Options

Financial instruments that give employees the right to buy or sell shares of the company's stock at a predetermined price.

Incentive Pay

A form of compensation designed to reward employees for achieving specific performance targets, thereby motivating them to increase productivity.