Question: What is the major difference between ABC and ABM? O ABC is used in managerial accounting, while ABM is used in financial accounting. ABC focuses

What is the major difference between ABC and ABM? O ABC is used in managerial accounting, while ABM is used in financial accounting. ABC focuses on measurement, while ABM focuses on control. There is no difference: ABC and ABM are two names for the same thing. The goal of ABC is to accurately control costs, while the goal of ABM is to allocate costs most effectively to cost objectives

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

What is the major difference between ABC and ABM? A. ABC is used in managerial accounting while ABM is used in financial accounting. B. ABC focuses on control while ABM focuses on measurement. C. The...

Charan- Bus 3/3 4-5-6 1. Mixed costs are also referred to as semivariable costs. A) True B) False 2. Indirect costs occur when A) costs are directly traced to products or services. B) controllable...

Borderbooks Company uses activity-based costing. The company produces soft and hard-cover books. The estimated costs and expected activity for each of the activity pools follow: Activity Estimated...

14. What is the major difference between ABC and ABM? A) The goal of ABC is to accurately control costs, while the goal of ABM is to allocate costs most effectively to cost objectives. B) There is no...

What is the major difference between ABC and ABM? ABC is used in managerial accounting, while ABM is used in financial accounting. O ABC focuses on measurement, while ABM focuses on control. There is...

Practice Question 1 The process of assigning direct costs is referred to as cost allocation. True False Practice Question 2 Which one of the following costs would most likely be allocated to products...

Read the article, Information Usefulness and Usage in Business Decision-Making: An Activity-Based Costing (ABC) Perspective (the article can be located via the LIRN in GAP). In a 4 to 6-page written...

Case 9-2 Continental A.G. Write a report of approximately 750 words that addresses the following points: Examine Continental?s financial statements for unusual accounting practices that may have a...

Controller, Judy Koch, in a recent speech said, "I rarely see a real variable cost or a truly fixed cost." What did she mean? Include in your response an explanation of the difference in behavior of...

Test Questions Question No 1 Information is relevant in business decisions if it is a(n) ________. A. past revenue and it differs among alternatives B. expected future revenue and it differs among...

In the month of July, Wexter Inc. posted revenue of $15,228.65 and expenses of $15,159.87. Calculate the net income or loss for the month. Round answer to 2 decimal places Do Not enter a $ DO enter...

A small doctors' surgery is considering providing a wireless network for use by nurses to access patient data in real time. Which of the following is a disadvantage of using a wireless network in...

Create the indirect statement of cashflows Notes [ 1 ] Purchased equipment costing $ 2 0 5 , 0 0 0 ; sold equipment that had an original cost of $ 1 4 9 , 0 0 0 recording a loss of $ 1 7 , 0 0 0 . [...

An entity has agreed in a directors' meeting to sell a building and has tentatively started looking for a buyer for the building. The price of the building has been fixed at P6 and a surveyor has...

Now consider a different insurance company that does not have the inclination to tailor contracts specifically to individuals. Instead, it will offer a standard contract with the premium r =$100 and...

Assume that Jay discovers, to his dismay, that his 2014 healthy-state income will be lower than his 2013 healthy-state income, but that his sick-state income IS is unchanged from 2013 to 2014. Assume...

In an actuarially fair insurance contract, the insurance premium equals the probability of sickness times the payout amount.