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:

Sustainable Forests

Sustainable forests are managed with the aim of maintaining their biodiversity, productivity, and regeneration capacity for future generations without causing damage to other ecosystems.

Deforestation

The removal of a forest or stand of trees where the land is thereafter converted to a non-forest use.

Economic Growth

An increase in a country's production of goods and services over a period, often measured by the rise in its Gross Domestic Product (GDP).

Environment

Refers to the natural world, including the air, water, and land in which people, plants, and animals live.