Activity-Based Costing and Bottom-Up Budgeting Share the Step Of

question 69

Multiple Choice

Activity-based costing and bottom-up budgeting share the step of:

• A) Identifying cost drivers associated with each activity.
• B) Identifying activities that consumer resources and assigning costs to them.
• C) Assigning costs to projects by multiplying the cost driver rate times the volume of units.
• D) Tending to overestimate project costs due to the lack of involvement by top management.

Identify different methods for estimating cost behavior, including the high-low method and least-squares regression method.

Compute and understand the significance of the total contribution margin, contribution margin ratio, and margin of safety.

Apply the concept of break-even analysis for both units and dollars, and its implications for business planning.

Use the degree of operating leverage to assess the impact of sales volume changes on profit.

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Definitions:

Evolutionary Adaptations

Changes in organisms over generations due to natural selection, which improve their ability to survive and reproduce in a particular environment.

Psychological Sex Differences

Refers to the distinctions in behavior, cognition, and emotional processing that are typically observed between males and females, often rooted in biological, environmental, and social influences.

Gender Role

The set of societal norms dictating what types of behaviors are considered appropriate based on perceived or assigned gender.

Expectations

Beliefs about the way events, actions, or behaviors are likely to turn out in the future or how individuals should behave in certain situations.