If Activity-Based Costing Is Used, Modifications Made by Engineering to the Product

question 27

Multiple Choice

If activity-based costing is used, modifications made by engineering to the product design of several products would be classified as a

• A)unit-level activity.
• B)batch-level activity.
• C)product-level activity.
• D)facility-level activity.

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Definitions:

Stakeholders

Groups, other than the company’s shareholders, that are affected by corporate decisions. Stakeholders include employees, customers, creditors, suppliers, and the community in which the corporation operates.

Tender Offer

A public offer made by a person, company, or entity to purchase a substantial portion of another company's shares or bonds.

Voting Shares

Stocks that grant the holder the right to vote on corporate matters at shareholders' meetings.

Poison Pill

a defense strategy used by companies to prevent or discourage unwanted takeover attempts by making the company less attractive to the acquirer.