Which of the Following Is Not an Objective of Activity-Based

question 65

Multiple Choice

Which of the following is not an objective of activity-based management?

• A)to improve decision making through better cost information
• B)to increase the activity it takes to perform processes
• C)to encourage cost reduction through continuous improvement
• D)to increase profitability

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Definitions:

Adjusting Entries

Accounting adjustments used to ensure that revenue and expense recognition principles are followed accurately in the financial statements.

Reversing Entries

Optional accounting procedures that are used to cancel out adjusting entries of the previous accounting period in the new period.

Interest Expense

The cost incurred by an entity for borrowing funds, often reported on the income statement.

Closing Journal Entries

At the close of an accounting cycle, transactions are documented to move balances from provisional to fixed accounts.