An objective of activity-based management is to
A)eliminate the majority of centralized activities in an organization.
B)reduce or eliminate non-value-added activities incurred to make a product or provide a service.
C)institute responsibility accounting systems in decentralized organizations.
D)all of the above

Question

Quizplus · Accepted Answer

The objective of activity-based management is to reduce or eliminate non-value-added activities incurred to make a product or provide a service. While it is true that implementing responsibility accounting systems in decentralized organizations may be a result of activity-based management, it is not a primary objective. Eliminating the majority of centralized activities may also be a result of activity-based management, but it is not the primary objective. Therefore, only option B is the best choice.

An Objective of Activity-Based Management Is to