Which of the following is true of the process dimension of an activity-based management (ABM) model?
A)The process dimension aims at improving the accuracy of cost assignments.
B)The process dimension provides the ability to engage in and measure continuous improvement.
C)The process dimension provides cost information about resources, activities, and cost objects of interest.
D)The process dimension is not concerned with the issue or presence of waste in activities.

Question

Quizplus · Accepted Answer

The process dimension of an ABM model is concerned with identifying and improving the efficiency and effectiveness of organizational processes. It provides the ability to engage in and measure continuous improvement efforts, such as reducing cycle time and eliminating waste. While the process dimension does also aim to improve the accuracy of cost assignments (option A) and provides cost information about resources, activities, and cost objects (option C), these are not the primary focus of this dimension. Option D is incorrect as the process dimension is concerned with identifying and eliminating waste in activities.

Which of the Following Is True of the Process Dimension