Which of the Following Is an Example of a Factor

question 233

Multiple Choice

Which of the following is an example of a factor that a firm's owners and managers can control in making the firm successful?

• A)The ability to produce the product at a lower cost
• B)Changing consumer tastes
• C)A rise in the price of a key input, for example, a rise in the price of oil leads to higher energy costs
• D)The number of competitors in the market

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Definitions:

Product-level Activity

Activities or costs in cost accounting that are directly tied to specific products, including design and setup costs.

Unit-level Activity

Tasks or operations that vary with the number of units produced, such as assembling or packaging.

Resource Consumption

The amount of resources used during a process, such as raw materials, energy, or labor.

Activity Rate

The cost incurred per unit of activity, used in activity-based costing to allocate overhead costs to products.