Dave Owns Several Computer Repair Shops Across the Midwest,and He

question 56

Multiple Choice

Dave owns several computer repair shops across the Midwest,and he has set a goal for his company of cutting costs in all his locations over the next three years.Dave has set a(n)

• A)tactical goal.
• B)management guideline.
• C)business plan.
• D)strategic goal.
• E)operational goal.

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Definitions:

Activity-Based Costing

A method of costing that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Fabrication Activity Cost Pool

A grouping of all the costs associated with the fabrication activities in a manufacturing process, used in activity-based costing.

Idle Capacity

Idle capacity refers to the unused portion of the total capacity of a manufacturing unit which could otherwise be used to produce goods and generate revenue.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, improving the accuracy of product costing.