Identifying Activities Performed in the Organization Is the First Step

question 116

Multiple Choice

Identifying activities performed in the organization is the first step in developing activity-based product costs.Which of the following is a way to identify these activities?

• A)Asking managers about product profitability
• B)Observe what employees do
• C)Separate costs into cost pools
• D)Perform first-stage allocation

---

Definitions:

Labor Taxes

Taxes imposed on the wages and salaries of employees.

Consumer Surplus

The deviation between the overall amount consumers are keen and able to pay for a good or service against the sum actually paid.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive, measuring producers' benefit.

Tax

A mandatory monetary fee or different kind of charge levied on a taxpayer by a government entity to support government expenditures and various public costs.