Activity Analysis Is One of the First Stages in Implementing

question 90

Multiple Choice

Activity analysis is one of the first stages in implementing activity-based cost management (ABCM) . Which of the following steps in activity analysis is usually performed first?

• A) Classify all activities as value-added or nonvalue-added.
• B) Chart, from start to finish, the activities used to complete the product or service.
• C) Identify the process objectives that are defined by what the customer wants or expects from the process.
• D) Continuously improve the efficiency of all value-added activities and develop plans to eliminate or reduce nonvalue-added ones.

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Definitions:

Retained Earnings

The portion of profits kept in the company rather than paid out as dividends, which can be used for investment or debt reduction.

Retained Earnings

The portion of net earnings not distributed as dividends to shareholders, but retained by the company for reinvestment.

Appropriations

Funds set aside by a legislative body for a specific purpose, often referring to government budgeting.