Assume That You Have Made Profit Calculations Based on Standard

question 23

Multiple Choice

Assume that you have made profit calculations based on standard profit calculation methods and activity based costing methods. In which ways will this information be beneficial to the management team? Select all the true statements.

• A) Under an activity based costing system the various support activities that are involved in the process of making products or providing services are identified.
• B) The cost drivers that cause a change to the cost of activities are also identified and used as the basis to attach activity costs to a particular product or service.
• C) Through the tracing of costs to product in this way ABC establishes less accurate costs for the product or service.
• D) The identification of cost drivers provides information to management to enable them to take actions to improve the overall profitability of the company.
• E) Operational analysis will provide information to management on how costs can be incurred and managed.

---

Definitions:

Cell Shape

The form and structure of a cell, which is often related to its function in the body or in a multicellular organism.

Nucleus

Cell organelle containing most of the genetic material of the cell; collection of nerve cell bodies within the central nervous system; center of an atom consisting of protons and neutrons. Plural: Nuclei.

Chromosomes

The structures within cells that hold genes, made up of DNA and protein, and are key to the process of heredity and determining traits.

Organelle

Specialized part of a cell with one or more specific individual functions.