In Performing Activity Analysis During the Design of an Activity-Based

question 121

Multiple Choice

In performing activity analysis during the design of an activity-based costing system (ABC) ,the management accountant studies:

• A)The cost drivers and managers in the plant.
• B)The advice of operation-level mangers.
• C)The resources,activities and cost drivers in the operation.
• D)The cost allocation methods applicable to the firm.
• E)The implementation problems for an ABC system.

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Definitions:

Macaroni And Cheese

A popular dish made typically from cooked macaroni pasta and a cheese sauce, often with added ingredients such as breadcrumbs or meat.

Serving

The portion or quantity of food designated as a single helping.

Marginal Utility

The additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a good or service.

Units

Quantities measured according to specific standards for purposes of counting, comparison, or calculation.