Which of the Following Does Not Represent How Managers Make

question 67

Multiple Choice

Which of the following does not represent how managers make cost-benefit decisions as to the use of activity analysis or traditional costing methods?

• A)They reject activity analysis and stay with the simpler traditional method.
• B)They use activity-based costing because they want information that will help them be competitive.
• C)They use traditional costing as a special analysis,but not as an ongoing information system.
• D)They use activity-based costing as a special analysis,but not as an ongoing information system.

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Definitions:

Natural Rate

The natural rate is often described as the rate of unemployment where the labor market is in equilibrium, including frictional and structural unemployment but no cyclical unemployment.

Expected Inflation

The projection of the rate at which prices of goods and services will rise over a specific period in the future.

Expected Inflation

The rate at which the general level of prices for goods and services is expected to rise.

Short-run Phillips Curve

A graphical representation that shows the inverse relationship between the rate of unemployment and the rate of inflation in an economy over the short term.