"I Have to Help My Operations Manager Reduce Expenses," Said

question 61

Multiple Choice

"I have to help my operations manager reduce expenses," said Oliver, "but my expense categories-salaries, fringes, supplies, and fixed costs-are too general to give me guidance." Candice, his accounting supervisor, said, "Let me show you a different approach, so that you can develop data that will identify areas for expense reduction. I suggest that you use ________. It will identify streams of activity to which you can then allocate costs across particular business processes according to the time employees devote to those activities."

• A) sales forecasting
• B) production costing
• C) activity-based costing
• D) capital costing
• E) operational costing

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