Activity Analysis Is an Important Approach to Operations Control and the Successful

question 76

Multiple Choice

Activity analysis is an important approach to operations control and the successful implementation of an activity-based costing (ABC) system.Which of the following procedures is not part of activity analysis?

• A) Chart,from start to finish,the activities used to complete the product or service.
• B) Classify all activities as either value-added or nonvalue-added activities.
• C) Identify the process objectives as defined by what the customer desires from the process.
• D) Compute the predetermined rate per activity by dividing the total cost pool by the total cost drivers.

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Definitions:

Nominal Sharpe Ratio

A measure of risk-adjusted performance that indicates the average return minus the risk-free return divided by the standard deviation of return on an investment.

Nominal Return

The amount of profit or loss on an investment before adjusting for inflation.

Real Return

The rate of return on an investment after adjusting for inflation, representing the actual purchasing power gained or lost.

Holding-period Return

The overall profit earned from owning an asset or a collection of assets for a certain duration, taking into account both earnings and growth in value.