The Process of Using ABC to Help Reduce and Eliminate

question 57

True/False

The process of using ABC to help reduce and eliminate non-value-added activities is activity-based management.

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Definitions:

Term Deposit

A financial product offered by banks that earns interest and is held for a predetermined period until it reaches the date of maturity.

Simple Interest Rate

An interest rate calculated only on the principal amount, not on previously earned interest.

Interest

Money paid regularly at a particular rate for the use of money lent or for delaying the repayment of a debt.

Invested

Funds or resources allocated for the purpose of generating income or profit.