Behavioural Issues May Be Important in Implementing an ABC System

question 82

Multiple Choice

Behavioural issues may be important in implementing an ABC system. Which of the following are some of the methods employed to minimise adverse outcomes?
i. Use a top down approach.
ii. Use a bottom up approach.
iii. Ensure all employees have a sense of ownership in the system.

• A) i and ii
• B) ii and iii
• C) iii
• D) i and iii

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Definitions:

Present Values

A calculation that determines the present worth of a future sum of money or stream of cash flows, given a specified rate of return.

Technical Analysis

A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume.

Statistical Analysis

A method of collecting, reviewing, and interpreting data to discover patterns, correlations, or trends.

Present Value

It measures the current value of a future amount of money or stream of cash flows, using a specific discount rate to account for the time value of money.