"I Have to Help My Operations Manager Reduce Expenses," Said

Multiple Choice

"I have to help my operations manager reduce expenses," said Oliver, "but my expense categories-salaries, fringes, supplies, and fixed costs-are too general to give me guidance." Candice, his accounting supervisor, said, "Let me show you a different approach, so that you can develop data that will identify areas for expense reduction. I suggest that you use ________. It will identify streams of activity to which you can then allocate costs across particular business processes according to the time employees devote to those activities."

A) sales forecasting
B) production costing
C) activity-based costing
D) capital costing
E) operational costing