Which of the Following Is a Contemporary Management Technique Used

question 30

Multiple Choice

Which of the following is a contemporary management technique used by the management accountant to identify and monitor the costs of a product throughout all steps from product design to the finished product?

• A)Enterprise risk management.
• B)Target costing.
• C)Life cycle costing.
• D)Enterprise sustainability.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or business activity, such as rent, salaries, and insurance premiums.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor.

Theory of Constraints

A management approach that focuses on identifying and managing the most limiting factor (constraint) that stands in the way of achieving a goal.

Goldratt and Cox

Eliyahu M. Goldratt and Jeff Cox, co-authors of "The Goal," a book introducing the Theory of Constraints, a methodology for improving organizational performance.