Productivity Improvements Can Be Registered by Companies That

question 100

Multiple Choice

Productivity improvements can be registered by companies that

• A)reduce the number of direct employees.
• B)increase the use of part-time help.
• C)rely more on subcontracting of parts.
• D)all of the above

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Definitions:

Activity-Based Budgeting (ABB)

A budgeting approach that determines the cost of activities necessary for producing a product or service, aiming to improve cost efficiency.

Activity-Based Costing (ABC)

A costing methodology that assigns overhead and indirect costs to specific activities, thereby providing more accurate cost information.

Sales Volume

Refers to the number of units of product or service sold by a company over a specific time period, indicating business activity level.

Unfavourable Variance

A financial metric indicating that actual costs were higher or revenues were lower than the planned or standard amounts.