_____ is a control system that identifies the various activities needed to produce a product and determines the cost of those activities.
A) Open-book management
B) An economic value-added system
C) Activity-based costing
D) An inappropriate control system
E) None of these

Question

Quizplus · Accepted Answer

Activity-based costing is the control system that identifies the different activities required to produce a product and determines the cost of those activities. This system helps to allocate costs accurately, as it assigns indirect costs to products based on their actual usage of resources instead of a general cost rate. Open-book management and an economic value-added system are not related to identifying and determining the costs of activities, and "an inappropriate control system" is too broad to be the correct answer.

_____ Is a Control System That Identifies the Various Activities