Which of the Following Statements Is (Are) True Regarding a Company

question 95

Multiple Choice

Which of the following statements is (are) true regarding a company that has implemented flexible manufacturing systems and activity-based costing?
I. The company has erred, as these two practices used in conjunction with one another will severely limit the firm's ability to analyze costs over the relevant range.
II. Costs formerly viewed as fixed under traditional-costing systems may now be considered variable with respect to changes in cost drivers such as number of setups, number of material moves, and so forth.
III. As compared with the results obtained under a traditional-costing system, the concept of break-even analysis loses meaning.

• A) I only.
• B) II only.
• C) III only.
• D) I and II.
• E) II and III.

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Definitions:

Positive Rewards

Stimuli or reinforcements that increase the likelihood of a repeating behavior by inducing a pleasurable outcome.

Operant Conditioning

A learning configuration where the conditioning of behavior strength turns on the axis of reinforcement or punitive action.

Schizophrenia

A chronic brain disorder that affects a person's ability to think, feel, and behave clearly.

Rational

Based on or in accordance with reason or logic; capable of logical or reasoned thinking.