Accounting / July 19, 2018 / Pearl Bailey
Activity-based costing (ABC) is an accounting method that identifies and assigns costs to overhead activities and then assigns those costs to products. An activity-based costing (ABC) system recognizes the relationship between costs, overhead activities, and manufactured products, and through this relationship, it assigns indirect costs to products less arbitrarily than traditional methods.
A positive net interest margin indicates that an entity has invested its funds efficiently while a negative return implies that the bank or investment firm has not invested efficiently. In a negative net interest margin scenario, the company would have been better served by applying the investment funds toward outstanding debt or utilizing the funds for more profitable revenue streams.
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