SAccounting - Unit 4

The ABC model emerged as a response to the limitations of traditional cost accounting systems in accurately assigning indirect costs.

• True

• False

Operational ABM often involves redesigning the business model by repositioning the company's value proposition.

• True

• False

Among the key ideas of the ABC model, we find that it is the products and services that consume costs, unlike traditional systems that focused on activities.

• True

• False

When classifying activities according to the cost driver hierarchy, there are global, product, order or batch, and volume or unit activities.

• True

• False

The main objective of ABM is to assign costs more accurately, without intervening in strategic decision-making.

• True

• False

It is said that a cost driver is negative when it causes unnecessary work or decreases profits.

• True

• False

Key performance indicators (KPIs) must be quantifiable.

• True

• False

Among the procedures that can be carried out to identify the tasks of each centre, we find the use of questionnaires or interviews with the workers themselves.

• True

• False

The ABC model uses an aggregated approach to define tasks, grouping sets of tasks within the same activity as long as they are homogeneous, regardless of whether the same unit of measurement is used or not.

• True

• False

The reports prepared, the audit hours assigned, and the number of departments evaluated are examples of cost drivers for the task 'internal audits'.

• True

• False