An Operational Project Is One That

question 88

Multiple Choice

An operational project is one that

• A)must be completed.
• B)supports an organizations' long-run mission.
• C)can improve organizational performance.
• D)is completed to meet regulatory compliance.

Calculate activity rates for specific activity cost pools.

Understand how overhead costs are allocated to products using activity-based costing.

Recognize the systematic shifting of costs between high-volume and low-volume products in an activity-based costing system.

Calculate unit product costs under activity-based costing.

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Definitions:

Collection Period

A financial metric that indicates the average number of days it takes a company to collect payments from its credit sales, essentially a detailed aspect of collection time with focus on receivables.

Accounts Receivable Balance

The accounts receivable balance is the total amount owed to a company by its customers for goods or services delivered on credit but not yet paid for.

Calendar Year

A one-year period that begins on January 1 and ends on December 31, used for general purposes including statutory reporting and personal timekeeping.

Sales Estimate

An approximate calculation or judgment of the amount of sales a company expects to achieve in a specific period.