The Process of Using Activity-Based Costing Information to Manage a Business's

question 57

Multiple Choice

The process of using activity-based costing information to manage a business's activities,and thus its costs,is called

• A)activities' management.
• B)product management.
• C)activity-based management.
• D)neither Activities' management,product management,or activity-based management.

---

Definitions:

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of a product or service.

Marginal Cost

The cost of producing one more unit of a good or service, reflecting the increase in total cost that comes from increasing the level of production by one unit.

Maximize Profits

A business objective aiming to achieve the highest possible financial gain from operations.

Economic Profit

The surplus remaining after total costs (both explicit and implicit) are deducted from total revenue, reflecting the true profitability of a firm.