In Order to Increase a Company's Bottom Line, It Can

question 166

Multiple Choice

In order to increase a company's bottom line, it can

• A)increase sales and expenses.
• B)decrease non-value-added costs and increase value-added costs.
• C)assign the same profit margin to each product.
• D)increase sales and decrease costs.

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Definitions:

Activity-Based Costing

A cost accounting method that assigns overhead and indirect costs to specific activities and objects, improving the accuracy of product and service costing.

Batch Level Activity

Activities and costs associated with processing a batch of units, which occur each time a batch is handled or processed, regardless of the number of units in the batch.

Activity-Based Product Costing

A costing method that allocates overhead and indirect costs to products based on the activities required to produce them.

Product Line

A group of related products marketed by a company, often sharing a common theme, technology, or target market.