One of the Major Benefits of ABC Is That There

question 53

True/False

One of the major benefits of ABC is that there are virtually no behavioural implications of introducing such a costing system, as there is no real change in the way data are collected and analysed.

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Definitions:

Replacement Cost

The cost to replace an asset with another of similar kind and quality at current prices, without deduction for depreciation.

Book Value Per Share

A financial measure that calculates the per share value of a company based on common shareholders' equity in the business.

Assets

Resources owned or controlled by a business, entity, or individual with the expectation that they will provide future economic benefit.

Liabilities

Financial obligations or debts that a company or individual owes, which can include loans, accounts payable, mortgages, and other amounts due to third parties.