The activity-based resource usage model improves managerial control and decision making such as
A)the best way to use excess activity capacity in the system.
B)maximization of individual unit performance.
C)increasing the allocation of costs.
D)focusing on managing costs rather than activities.

Question

Quizplus · Accepted Answer

The activity-based resource usage model provides detailed information on the capacity utilization of various activities, which helps managers to identify excess capacity and explore alternative ways to use the capacity. This improves managerial control and decision making. Option B is incorrect as maximizing individual unit performance is not the main objective of the activity-based resource usage model. Option C is incorrect as the activity-based resource usage model aims to improve cost allocation accuracy rather than increasing cost allocation. Option D is incorrect as the model is focused on managing activities to control costs.

The Activity-Based Resource Usage Model Improves Managerial Control and Decision