Determining What Activities Add Customer Value Is an Example of What

question 48

Multiple Choice

Determining what activities add customer value is an example of what facet of activity-based management?

• A)increase effective coordination among business function activities
• B)reduce costs of non-value-added activities
• C)improve selection of process activities to enhance profit
• D)match the company's use of resources to customer demand
• E)achieve planned growth

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Definitions:

Depreciation

A structured approach to spreading out the cost of a solid asset over the period it is expected to be useful.

Variances

Differences between expected and actual performance in areas like budget, costs, and schedule in financial and project management.

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not change regardless of the level of production, such as salaries of supervisors and rent for the factory.

Budgeted Activity

The level of operation or volume of work planned for a period, used in budgeting and planning processes.