Activity-based management describes management decisions that use activity-based costing information to
A)improve product pricing, cost reduction and design.
B)identify potential customers.
C)smooth indirect costs.
D)eliminate activities that add value but are not cost drivers.
E)anticipate changes in the market.

Question

Quizplus · Accepted Answer

Activity-based management uses information from activity-based costing to improve product pricing, cost reduction and design by identifying cost drivers and eliminating non-value adding activities. It does not necessarily deal with identifying potential customers, smoothing indirect costs or anticipating changes in the market.

Activity-Based Management Describes Management Decisions That Use Activity-Based Costing Information