Activity-based management focuses on using the costs of performing the activities required to produce and sell products to identify activities that are non-value added.

Question

Quizplus · Accepted Answer

Activity-based management (ABM) is a management approach that focuses on identifying and managing activities that consume resources and add cost to the production and sale of products/services. ABM aims to improve the efficiency and effectiveness of the organization by identifying non-value added activities and eliminating them or reducing their costs. Therefore, the statement is true.

Activity-Based Management Focuses on Using the Costs of Performing the Activities