Companies Who Want to Identify and Eliminate Non-Value-Added Activities May

question 29

Multiple Choice

Companies who want to identify and eliminate non-value-added activities may implement:

• A)Traditional costing.
• B)Departmental costing.
• C)activity-based costing (ABC).
• D)activity-based management (ABM).
• E)None of the answer choices is correct.

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Definitions:

Consumer's Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually do pay.

Net Increase

The overall rise in a particular number after all deductions or decreases have been considered.

Units of X

A term commonly used in economics and other disciplines to denote a quantity or amount of a particular good or service referred to as "X."

Utility Function

A mathematical representation of how a consumer ranks different bundles of goods such that the higher the function's value, the higher the level of satisfaction.