Activity-Based Costing First Assigns Costs to Products and Then Uses

question 80

True/False

Activity-based costing first assigns costs to products and then uses these product costs to assign costs to manufacturing activities.

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Definitions:

Vendor-Managed Inventory

A replenishment strategy where the supplier is responsible for maintaining the inventory levels of their products at the customer's location.

Outsourcing

The business practice of hiring external vendors to perform services or produce goods that were previously handled internally, often to reduce costs or focus on core competencies.

Benchmark Firms

Companies that are considered to be the best in their industry or category and whose practices are used as a standard or comparison in benchmarking studies.

Supply-Chain Performance

The assessment of how effectively and efficiently a supply chain operates, often measured by metrics such as delivery time, quality, and cost.