Activity Analysis Is an Important Approach to Operations Control and the Successful

question 129

Multiple Choice

Activity analysis is an important approach to operations control and the successful implementation of activity-based cost management (ABCM) . Which of the following procedures is not part of activity analysis?

• A) Chart, from start to finish, the activities used to complete the product or service.
• B) Classify all activities as either value-added or nonvalue-added activities.
• C) Identify the process objectives as defined by what the customer desires from the process.
• D) Compute the predetermined rate per activity by dividing the total cost pool by the total cost drivers.

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Definitions:

Long-Run Aggregate Supply Curve

A graphical representation showing the relationship between the price level and the quantity of output that can be produced in the economy in the long run, assuming all resources are fully employed.

Capital Stock

The total representation of a company's or country's machinery, buildings, and other physical assets used in production.

Price Level

A measure of the average prices of goods and services in the economy, often compared over time to assess inflation or deflation.

Long-Run Aggregate Supply Curve

A vertical line representing the real output of goods and services that an economy can produce when it is fully employed, regardless of the level of demand.