The Greatest Benefit of Activity Analysis Is That It Directs

question 15

Multiple Choice

The greatest benefit of activity analysis is that it directs management accountants to the ________.

• A) relevant costs for decision making
• B) most accurate product cost
• C) appropriate cost driver for each cost
• D) most accurate product price

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Definitions:

Commodity

represents a basic good used in commerce that is interchangeable with other goods of the same type.

Produce

Refers to agricultural products and goods that have been grown or farmed.

Industry

The sector of an economy that is involved in the production of goods or related services.

Advantage

A condition or circumstance that places a person or entity in a favorable or superior position.