A technique for improving performance of activities and processes that predicts activity costs as activity output changes is called
A)value-added reporting.
B)activity flexible budgeting.
C)Kaizen costing.
D)benchmarking.

Question

Quizplus · Accepted Answer

The technique described in the question is called activity flexible budgeting, which involves predicting costs based on changes in activity levels. Choice A (value-added reporting) refers to a method of identifying and measuring the value added by each activity in a process. Choice C (Kaizen costing) involves continually improving processes and reducing costs. Choice D (benchmarking) involves comparing performance against industry standards or best practices. While all of these techniques can be useful for improving performance, only choice B relates directly to the method described in the question.

A Technique for Improving Performance of Activities and Processes That