The Activity-Based Resource Usage Model Improves Managerial Control and Decision

question 34

Multiple Choice

The activity-based resource usage model improves managerial control and decision making such as

• A)the best way to use excess activity capacity in the system.
• B)maximization of individual unit performance.
• C)increasing the allocation of costs.
• D)focusing on managing costs rather than activities.

---

Definitions:

Pharmaceutical Companies

Businesses involved in the research, development, production, and marketing of drugs and medications.

Socially Optimal

A state of resource allocation where social welfare, typically measured in terms of efficiency and equity, is maximized.

Marginal Cost

The increase in total cost that arises from producing one additional unit of output.

Efficient Level

The point at which the optimal quantity of a good or service is produced, maximizing the potential benefit and minimizing waste.