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.