Activity-Based Management Can Be Viewed as an Information System with Broad

question 95

Multiple Choice

Activity-based management can be viewed as an information system with broad objectives.Which of the following is NOT one of the broad objectives of ABM?

• A)Support continuous improvement through increasing costs.
• B)Increase the non-value-added costs through increased collection of more accurate cost accounting information.
• C)Improve decision making through more accurate cost data.
• D)Increasing costs by encouraging process value analysis.

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Definitions:

Quick Ratio

A financial metric that measures a company's ability to meet short-term obligations with its most liquid assets, excluding inventory.

Evaluation Of Liquidity

The process of assessing a company's ability to meet its short-term obligations using its current assets.

Current Obligations

Debts or financial commitments that are due to be settled within one year or within the normal operating cycle of the business.

Times Interest Earned Ratio

Operating income divided by interest expense.