Managers Can Use the NAICS Data To

question 110

Multiple Choice

Managers can use the NAICS data to:

• A) create a more focused mission statement
• B) eliminate risk
• C) classify consumer behavior
• D) identify potential new customers
• E) determine purchase motives

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate costs of producing specific products or services.

Activity Rate

The cost driver rate used in activity-based costing to allocate expenses to cost objects based on their use of activities.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming for more precise allocation of indirect costs.

Machine-Hours

A unit of measure representing the cumulative number of hours a machine is operated within a specific time frame.