Which of the Following Would Be an Appropriate Alternative to the Use

question 77

Multiple Choice

Which of the following would be an appropriate alternative to the use of ROI in evaluating the performance of an investment center?
$\begin{array}{lll}\text { Residual } & \text { Net cash } & \text { Cost and revenue } \\\underline{\text { income }} &\underline{ \text { flow }} &\underline{ \text { Variance analysis }}\end{array}$

• A)yes yes yes
• B)no yes no
• C)yes no no
• D)yes no yes

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Definitions:

Activity-Based Costing

A method of accounting that assigns costs to products or services based on the activities they require.

Traditional Costing Method

A costing system that applies overhead costs to products based on a predetermined overhead rate, without regard to the actual activities that lead to those costs.

Unit Product Cost

The total cost associated with producing a single unit of output, including both variable and fixed costs.

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) associated with producing a single unit of a product.