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When comparing Activity-based costing (ABC) and the Theory of Constraints (TOC), the approach each method...

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Question

Accounting

When comparing Activity-based costing (ABC) and the Theory of Constraints (TOC), the approach each method takes toward profitability analysis is:

Multiple Choice

  • Both TOC and ABC take a short-term approach.

  • TOC takes a long-term approach and ABC takes a short-term approach.

  • Both TOC and ABC take a long-term approach.

  • TOC takes a short-term approach and ABC takes a long-term approach.

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