Which of the following is an objective of activity-based management?
A)to improve decision making through less accurate cost information
B)to increase the number of activities necessary to perform processes
C)to encourage cost reduction through continuous improvement
D)to decrease profitability

Question

Quizplus · Accepted Answer

The objective of activity-based management is to encourage cost reduction through continuous improvement. Activity-based management aims to identify and eliminate non-value-added activities, optimize resources, and improve overall efficiency and effectiveness. This often results in cost reduction and increased profitability for the organization. Option A is incorrect because activity-based management aims to provide more accurate cost information for decision making. Option B is incorrect because the goal of activity-based management is to streamline processes by reducing non-essential activities. Option D is incorrect because the purpose of activity-based management is to increase profitability, not decrease it.

Which of the Following Is an Objective of Activity-Based Management