The Process of Managing the Various Activities in the Value

question 49

Multiple Choice

The process of managing the various activities in the value chain, along with the associated costs, is commonly known as:

• A)activity-based costing.
• B)strategic cost management.
• C)total quality management.
• D)computer-integrated costing.
• E)sound management practices.

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Definitions:

Finishing Department

The final stage in the manufacturing process where products are completed and prepared for sale.

Transferred Out

In cost accounting, refers to the costs that have been moved from one production department to another in the process of manufacturing.

Predetermined Overhead Allocation Rate

This rate is calculated before the accounting period begins and is used to allocate overhead costs to products or services based on a specific activity base.

Direct Labor Cost

The wages and benefits paid to workers who are directly involved in the production of goods.