Which of the Following Is NOT a Trait of a Functional-Based

question 110

Multiple Choice

Which of the following is NOT a trait of a functional-based cost management system?

• A) unit-based drivers
• B) narrow and rigid product costing
• C) allocation-intensive
• D) focus on managing activities

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Definitions:

Accounting Profit

The total revenue of a business minus the explicit costs, representing the financial gain shown in the income statement.

Implicit Costs

The opportunity costs that arise from using assets, resources, or funds to undertake an action instead of another activity, not directly recorded in financial statements.

Explicit Costs

Direct monetary expenses incurred in the course of doing business, such as wages, rent, and materials.

Peak Efficiency

The optimal point at which a particular process or system operates with maximum effectiveness or efficiency.