Which of the following do managers use in choosing activities and cost drivers to include in an ABC system?
A) Linear programming
B) Simple regression
C) Judgment
D) Activity-based management

Question

Quizplus · Accepted Answer

Managers typically use judgment in choosing activities and cost drivers to include in an ABC system, as they have knowledge and experience with their organization's operations and can identify the key activities and cost drivers that drive costs. While linear programming and simple regression may be used in other aspects of cost management, they are not typically used in selecting activities and cost drivers for an ABC system. Activity-based management is a broader approach to managing costs that includes the use of ABC, but it is not specifically used in selecting activities and cost drivers for an ABC system.

Which of the Following Do Managers Use in Choosing Activities