An Activity-Based Costing System Improves the Allocation of Which of the Following

question 85

Multiple Choice

An activity-based costing system improves the allocation of which of the following manufacturing costs?

• A) Indirect manufacturing costs
• B) Direct labor
• C) Direct materials
• D) Sales commissions

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Definitions:

Productivity Improvement

The process of increasing the efficiency and effectiveness of a process, often by reducing waste and optimizing resources.

Output

The amount of goods or services produced by a process or system, serving as a measure of productivity and efficiency.

Operations Management

The specialization within management devoted to establishing and managing the production process and modifying business operations for the generation of goods or services.

Job Specialization

The process of focusing one's occupational concentration on a specific area of expertise, leading to increased efficiency and skill.