Which of the following statements is not correct when describing the Two Dimensi

Question

Which of the following statements is not correct when describing the Two Dimensional ABC  Model? This is the model that pictures the relationship between Activity Based Costing and Activity Based Management.

Th Activity Trigger represents the identification of the preceding organization completed product that triggers the next organization to begin their work.

Root cause is based on asking questions until you determine the cause of a problem.

Performance measurement is the is measurement of an organization's success in terms of performance versus plan.

Activity Level is the identification of costs charged to a specific department

Resource costs are involved with assignment of costs to activity pools.

Th Activity Trigger represents the identification of the preceding organization completed product that triggers the next organization to begin their work.

Root cause is based on asking questions until you determine the cause of a problem.

Performance measurement is the is measurement of an organization's success in terms of performance versus plan.

Activity Level is the identification of costs charged to a specific department

Resource costs are involved with assignment of costs to activity pools.

Explanation / Answer

The following statement is not correct when describing the Two Dimensional ABC Model

Root cause is based on asking questiona until you determine the cause of a problem. This technique is Root cause analysis, which is used to find why the problem occured in the first place.

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