The Process of Using ABC Information to Evaluate the Costs

question 15

Multiple Choice

The process of using ABC information to evaluate the costs and benefits of production and internal support activities is called:

• A) Activity-based management
• B) Activity-based budgeting
• C) Activity-based costing
• D) Activity-based consulting

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Definitions:

Small Production Batches

Manufacturing process involving the production of goods in small quantities, allowing for flexibility and customization.

Lean Manufacturing

A systematic method for waste minimization within a manufacturing system without sacrificing productivity, focusing on adding value and reducing non-value-adding activities.

Eliminating Waste

The process of removing non-value-adding activities in a business to improve efficiency.

Inventory Levels

Inventory levels refer to the quantity of goods and materials on hand at any given time within a business, which is crucial for meeting customer demand without overstocking.