In Activity-Based Costing, Supplier Costs

question 34

Multiple Choice

In activity-based costing, supplier costs

• A)must be narrower, including only the purchase price.
• B)are allocated to products arbitrarily.
• C)include costs of quality, reliability and timeliness and are assigned to products on a causal basis.
• D)all of these statements are true.

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Definitions:

Performance

The act of executing or performing a task, action, or duty.

Intervening Variable

A variable that explains the relationship between two other variables, typically in a cause-and-effect relationship.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, involving biological, emotional, social, and cognitive forces.

Performance Variable

A factor that can influence the outcome or level of performance in an activity or task.