Which of the Following Is True of Activity Selection in an Activity-Based

question 32

Multiple Choice

Which of the following is true of activity selection in an activity-based management system?

• A)It is a process that focuses on eliminating the non-value-added activities performed within an organization.
• B)It is a process that involves choosing among various sets of activities that are caused by competing strategies.
• C)It is a process that decreases the time and resources required by a set of activities to achieve an organizational goal.
• D)It is a process that increases the efficiency of necessary activities using economies of scale.

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Definitions:

Profit-Maximizing

A strategy where a firm adjusts production and sale levels to generate the highest profit possible.

Market Structure

The organization and characteristics of a market, including the level of competition, number of producers, and type of products.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.

Elastic

Describes the responsiveness of demand or supply to changes in price or income.