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Several Terms Associated with Activity-Based Costing and Activity-Based Management and Definitions

Question 16

Matching

Several terms associated with activity-based costing and activity-based management and definitions are listed on.Match each definition with the term it best describes. Each numbered item has only one correct answer. Each lettered item may be used only once or not at all.

Premises:
Increase the worth of an organization's services to customers
Managing customer profitability
Assumes some downtime is unavoidable for maintenance and holidays
Functions undertaken to oversee the entire entity
A function performed in an organization
Tasks undertaken to manage a location
The process of using ABC information to evaluate the costs and benefits of internal support activities
Related in a logical manner and consume similar resources
An activity that causes costs to fluctuate
A system for assigning overhead costs
Responses:
Activity-based management
Cost driver
None of the above
Activity-based costing
Homogeneous activities
Activity
A use of activity-based management
Customer-sustaining activities
Facility-sustaining activities
Organization-sustaining activities
Value-added activities

Correct Answer:

Activity-based management
Cost driver
None of the above
Activity-based costing
Homogeneous activities
Activity
A use of activity-based management
Customer-sustaining activities
Facility-sustaining activities
Organization-sustaining activities
Value-added activities
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