The ABC Model Links Resources to Activities Via Resource Drivers

question 21

True/False

The ABC model links resources to activities via resource drivers and activities to cost objects via activity drivers.

---

Definitions:

Long-Term Debt

Debt that is due to be paid off over a period longer than one year.

Earnings Per Share

A metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, indicating a company's profitability.

Treasury Stock

Shares that were issued and subsequently reacquired by the company, reducing the amount of outstanding stock on the open market.

Cash Dividends

Payments made by a corporation to its shareholder members from its profits or reserves.