Which One of the Following Is an Example of Activity-Based

question 61

Multiple Choice

Which one of the following is an example of activity-based costing?

• A)Monitoring the salaries of managers that do untimely quality control checks
• B)Keeping close track of shrinkage associated with thefts off the showroom floor
• C)Insuring that management is closely working with the local union on keeping labour costs in line
• D)Allocating the set up cost associated with getting a machine ready for a production run

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Definitions:

Financial Information

Data pertaining to the financial status and activities of an individual, organization, or project, including assets, liabilities, revenues, and expenses.

Planning Purposes

The intention behind actions or decisions aimed at forecasting future operations, setting goals, and determining the strategies and resources required to achieve them.

Future Profitability

The expected financial success or ability of a company to generate profit in future periods.

Accounts Receivable Aging

A report showing the unpaid invoices of a business, categorized by the length of time an invoice has been outstanding.