Before Using Activity-Based Costing (ABC),managers Must Apply the Cost-Benefit Principle

question 118

True/False

Before using activity-based costing (ABC),managers must apply the cost-benefit principle to the additional recordkeeping costs associated with ABC.

---

Definitions:

Normative Business Ethics

The study of ethical actions in business, focusing on the standards and principles that govern right and wrong behavior in the commercial world.

Descriptive Realities

The portrayal of things or situations as they actually exist, without interpretation or bias.

Industry Standards

Established norms and requirements within a specific industry that guide processes, ensure quality, and promote safety.