Match Each Item with the Correct Statement Below

question 80

Multiple Choice

Match each item with the correct statement below.
-Increases the efficiency of necessary activities by using economies of scale.

• A)cycle time
• B)direct tracing
• C)activity sharing
• D)driver tracing
• E)value-added activities
• F)activity selection

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Definitions:

Activity-Based Costing

A costing method that assigns costs to products and services based on the resources they consume.

Labor-Related

Pertaining to aspects of work or employment, often focusing on workers, their conditions, wages, or productivity.

Direct Labor-Hours (DLH)

The total amount of labor time expended directly on manufacturing or producing goods, often used to allocate costs to products.

Activity-Based Costing

A costing approach that estimates the expense of products or services by determining the activities needed for their production, thus offering a more precise understanding of costs.