Which of the Following Is a Reason for Managerial Activity

question 11

Multiple Choice

Which of the following is a reason for managerial activity to be considered a value-added activity?

• A)It is an enabling resource for operational activities that bring about a change of state.
• B)Managing activities brings order by changing the state from uncoordinated activities to coordinated activities.
• C)Both are reasons for classifying managerial activities as value-added activity.
• D)Neither is a reason for classifying managerial activities as value-added activity.

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Definitions:

Merchandising Company

A business that purchases finished goods for resale, making a profit by selling them at a higher price than the cost.

Product Cost

The total costs directly tied to the production of a product, including raw materials, labor, and overhead expenses.

Period Cost

Costs that are not directly tied to the production process and are expensed in the period in which they occur, such as selling, general, and administrative expenses.

Total Variable Cost

The sum of all costs that vary directly with the level of output or production, such as materials and labor directly used in manufacturing.