Following are a series of statements regarding topics discussed in this chapter.
(a) To assess a firm’s ability to pay an annual dividend, short-run performance measures are better than long-run performance measures.
(b) Product-level cost drivers should be used when the company manufactures products to each customer’s specification.
(c) The Du Pont model is a return on investment measurement.
(d) As the level of responsibility goes lower in an organization, the measurements of a manager’s job performance will become more general.
(e) Corporations should eliminate as many non-value- added activities as possible, but should not consider eliminating business-value-added activities.
(f) A manager’s performance measurements should correspond to the type of responsibility center the manager heads.
(g) Activity-based costing is useful to companies that have high direct material and direct labor costs and relatively low overhead.
(h) Quality inspection is generally viewed as a non-value-added activity.
(i) Cost drivers should be chosen so that expenses are distributed evenly between divisions.
(j) Long-run performance measures are typically financial.
(k) A process map should include only those activities that can be accurately timed.
(l) Benchmarking is often useful between companies that have different products but similar processes.
(m) It is possible to engage in activity-based management techniques without using activity-based costing.
Indicate whether each statement is true (T) or false (F).

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