Which of the following is true of activity selection in an activity-based management system?

a.It is a process that involves choosing among various sets of activities that are caused by competing strategies.

b.It is a process that decreases the time and resources required by a set of activities to achieve an organizational goal.

c.It is a process that increases the efficiency of necessary activities using economies of scale.

d.It is a process that focuses on eliminating the non-value-added activities performed within an organization.

Which of the following is an example of a value-added activity?

a.supervision of production workers

b.inspection of products

c.scheduling of production

d.All of these choices are value-added activities.

Which of the following process dimensions of the activity-based management model deals with "what"?

a.driver analysis

b.activities

c.performance measures

d.resources

Which of the following is a reason for managerial activity to be considered a value-added activity?

a.It is an enabling resource for operational activities that bring about a change of state.

b.Managing activities brings order by changing the state from uncoordinated activities to coordinated activities.

c.Both are reasons for classifying managerial activities as value-added activity.

d.Neither is a reason for classifying managerial activities as value-added activity.

Which of the following is descriptive of financial-based responsibility accounting?

a.Its goal is continuous improvement.

b.Its control emphasis is costs.

c.It assumes that activities are linked.

d.It assigns responsibility to organization units.

Which of the following is NOT a reason for ABM implementation failure?

a.expected results do not materialize

b.resistance to change

c.lack of support from higher-level managers

d.implementation is performed in a timely fashion

A technique for improving performance of activities and processes that searches for best practices is called

a.benchmarking.

b.value-added reporting.

c.trend reporting.

d.Kaizen costing.