The actions listed next are associated with either an activity-based operational control system or a functional-based operational control system.

a. Budgeted costs for the maintenance department are compared with the actual costs of the maintenance department. !

b. The maintenance department mani^er receives a bonus for "beating" budget.

c. The costs of resources are traced to activities and then to products.

d. The purchasing department is set up as a responsibility center.

e. Activities are identified and listed.

f. Activities are categorized as adding value or not adding value to the organization.

g. A standard for a product's material usage cost is set and compared against the prod¬

uct's actual material usage cost. Ujcv ' An'^ .^COv^ ip‘

h. The cost of performing an activity is tracked over time. tv n,- "

i. The distance between moves is identified as the cause of rnaterial-handlirig cost.'

j. A purchasing agent is rewarded for buying parts below the standard price set by the company.

k. The cost of the material-handling activity is reduced dramatically by redesigning the plant layout.

l. An investigation is undertaken to find out why the actual labor cost for the production of one thousand units is greater than the labor standard allowed. '

m. The percentage of defective units'^ is calculated and tracked oyer time. '

n. Engineering has been given the charge to find a way to reduce setup time by 75 percent.

o. The manager of the receiving department lays off two receiving clerks so that the fourthquarter budget can be met.

Required:

Classify the preceding actions as belonging to either an activity-based operational control system or a functional-based control system. Explain why you classified each action as you did.