Activity-Based Budgets

question 128

Multiple Choice

Activity-based budgets

• A)use the knowledge of cost behavior to split the functional-based line items into fixed and variable components.
• B)start with output and then determine the resources necessary to create that output.
• C)rely on the use of functional-based line items.
• D)work in environments where the products are homogenous and the production process is simple.

Understand the basis of payment under standard hour plans.

Recognize the importance of managerial willingness in the success of incentive plans.

Grasp the prevalence and rationale behind financial incentives for salespeople.

Analyze the effectiveness and challenges of various incentive systems.

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Definitions:

Evolution

The method through which various types of life are believed to have evolved and branched out from ancestral forms throughout Earth's history.

Radioisotopes

Unstable isotopes that spontaneously emit radiation; also called radioactive isotopes.

Half-Life

The time required for half the atoms of a radioactive substance to decay or for a drug or other substance to lose half its pharmacologic, physiologic, or radiologic activity.

Potassium-40

A radioactive isotope of potassium used in dating geological materials, as it decays into argon-40 over a known period of time.