Which of the Following Statements About the General Procedure Used

question 51

Multiple Choice

Which of the following statements about the general procedure used to conduct a cost or profitability analysis is true?

• A) The first step in conducting a cost or profitability analysis is to spread the natural account costs to the appropriate functional cost centers
• B) Before determining the purpose of the cost analysis, natural cost centers must be identified
• C) Before determining the purpose of the profitability analysis, natural account costs must be allocated to functional cost centers
• D) Good profitability analyses require that the various costs be partitioned into direct and indirect expenses so the proper aggregations can be made
• E) Natural accounts are the only way that costs can be classified for either a profitability or cost analysis

---

Definitions:

Illiteracy

The inability to read and write, affecting an individual's ability to participate fully in society and the workforce.

Productivity

A measure of the efficiency of a person, machine, system, or industry in converting inputs into useful outputs.

Operations Manager

An Operations Manager is a professional responsible for overseeing, designing, and controlling the production process and business operations.

Maintenance Schedules

Predefined plans for performing maintenance activities on equipment, facilities, or software to ensure their optimal performance and to prevent failures.