Comparing Activity-Based Management (ABM) and Lean Operations All of the Following

question 144

Multiple Choice

Comparing activity-based management (ABM) and lean operations all of the following are correct except

• A) both identify value-adding and nonvalue-adding activities.
• B) ABM uses a more complex accounting system.
• C) both are activity-based systems.
• D) JIT focuses on the accuracy of cost assignment.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales over a certain range and within a certain period.

Cost Structure

The composition of expenses a business incurs in the process of creating a product or service, including fixed, variable, and semi-variable costs.

Sales Volume

The total quantity of goods or services sold by a company during a specific period.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the level of fixed versus variable costs in a company's operating structure.