Which of the Following Is a Reason for Managerial Activity

question 11

Multiple Choice

Which of the following is a reason for managerial activity to be considered a value-added activity?

• A)It is an enabling resource for operational activities that bring about a change of state.
• B)Managing activities brings order by changing the state from uncoordinated activities to coordinated activities.
• C)Both are reasons for classifying managerial activities as value-added activity.
• D)Neither is a reason for classifying managerial activities as value-added activity.

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Definitions:

Residual Value

The estimated amount that an asset will realize upon its disposal at the end of its useful life.

Straight-Line Depreciation

A method of calculating the depreciation of an asset evenly over its useful life, assigning a fixed expense amount to every accounting period.

Fixed Asset

A durable, physical asset that a company possesses and employs in its business activities to produce revenue.

Salvage Value

Salvage value is the estimated residual value of an asset at the end of its useful life, indicating how much the asset can be sold for after it is no longer useful for its intended purpose.