The Process of Using Activity-Based Costing to Help Reduce and Eliminate

question 56

True/False

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

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Definitions:

T-Bill

Short for Treasury Bill, a short-term government security issued at a discount from the par value and repaid at maturity.

Annual Rate

A percentage representing the interest or growth a sum of money would earn over the course of a year.

Discounted

Reduced in price or value, often to encourage purchase or reflect the present value of future cash flows.

Simple Interest

Simple interest is a method of calculating the interest charge on a loan or investment based on the original principal amount and not on accumulated interest.