Activity-Based Cost Accounting Aims At

question 71

Multiple Choice

Activity-based cost accounting aims at:

• A) making cross-company comparisons of the costs of each value chain activity.
• B) dividing all company expenses into two categories: activities whose costs are variable and activities whose costs are fixed.
• C) determining the costs of each activity comprising a company's value chain by establishing expense categories for specific value chain activities and assigning costs to the activity responsible for creating the cost.
• D) determining the costs of each strategic action a company initiates.
• E) None of these.

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Definitions:

Social Audits

Evaluations of an organization's social impact, policies, and practices, often concerning its contributions to social responsibility and ethical standards.

Environmental Scans

The process of gathering, analyzing, and dispending information for strategic purposes from the external and internal environments of an organization.

Cause Marketing

A partnership between a for-profit business and a non-profit organization to mutually promote and benefit from social or environmental causes.

Societal Responsibility

The obligation of an organization to act in ways that benefit society at large, beyond its own interests.