Companies Use Activity-Based Management to

question 43

Multiple Choice

Companies use activity-based management to

• A)allocate the cost of activities to cost objects.
• B)forecast customer demand.
• C)develop systems for direct cost tracing and indirect cost allocation.
• D)plan and organize the implementation of activity-based costing.
• E)eliminate non-value added activities.

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Definitions:

Traffic Lights

Signaling devices positioned at road intersections, pedestrian crossings, and other locations to control flows of traffic.

Nonpayers

Individuals or entities that do not contribute payments towards a service or good from which they benefit.

Public Good

A good that is non-excludable and non-rivalrous, meaning that its consumption by one individual does not reduce availability to others.

Benefits

Advantages or gains that are derived from a specific action, policy, or product, including intangible and tangible outcomes.