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:

Choosing Goals

The process of identifying objectives or desired outcomes that guide decision-making and strategic planning in personal or organizational contexts.

Direct Materials Cost

The expense incurred for materials that are directly traceable to the production of goods.

Factory Overhead Cost

Indirect manufacturing costs that are not directly linked to the production process, including utilities, depreciation, and salaries of support staff.

Direct Labor Cost

The compensation given to employees who are directly engaged in manufacturing goods or providing services.