Match each item with the correct statement below.
-Cost assignment method used for a cost of a resource that is exclusively used by an activity.
A)cycle time
B)direct tracing
C)activity sharing
D)driver tracing
E)value-added activities
F)activity selection

Question

Quizplus · Accepted Answer

Direct tracing is the cost assignment method used for a cost of a resource that is exclusively used by an activity.

Answer: D 
 Driver tracing is used for assigning costs of resources that are used by multiple activities but can be traced to each activity based on usage.

Answer: C 
 Activity sharing is used when a cost is shared by two or more activities and cannot be exclusively assigned to any one of them.

Answer: E 
 Value-added activities are those that add value to the final product or service, resulting in an increase in its market value.

Answer: F 
 Activity selection involves selecting the activities that will be considered for cost analysis and management to improve efficiency and reduce costs.

Answer: A 
 Cycle time is the amount of time it takes to complete a process, from start to finish. It can be used to identify bottlenecks and inefficiencies in a process. It is not a cost assignment method.

Match Each Item with the Correct Statement Below