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:

Deposited

Referring to money that has been placed into a financial account for safekeeping or savings.

Time-Value

Refers to the concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Monetary Compensation

Payment provided to employees or workers in the form of money for their services or labor.

Labor Time

The duration of time workers spend performing their duties to produce goods or provide services.