When an Organization Implements Activity-Based Budgeting, Managers Must Identify Activities

question 110

Multiple Choice

When an organization implements activity-based budgeting, managers must identify activities for:

• A) Production
• B) Support
• C) Both production and support
• D) Neither production nor support, so long as cost drivers are clearly specified

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Definitions:

Legitimate Enterprise

A business or organization that is conducted lawfully and with genuine intentions.

Otherwise Legal

Pertaining to actions or conditions that are permitted or recognized by law, except for specific exclusions or conditions.

Phishing

Online fraud in which criminals pretend to be legitimate companies by using e-mails or malicious websites that trick individuals and companies into providing useful information, such as bank account numbers, Social Security numbers, and credit-card numbers.

Identity Theft

The act of stealing another’s identifying information—such as a name, date of birth, or Social Security number—and using that information to access the victim’s financial resources.