Which of the following decisions will most likely involve the use of activity-based management?
A)decisions related to the funding of an investment using equity or debt fund
B)decisions related to the expansion operations in a particular geographic location
C)decisions related to the pricing of a product
D)decisions related to the payment of dividends

Question

Quizplus · Accepted Answer

Activity-based management involves analyzing the costs and profitability of different activities within a company. Decisions related to product pricing involve this type of analysis, as it requires understanding the cost of producing the product and the profitability of selling it at different price points. Choices A, B, and D are not likely to involve activity-based management.

Which of the Following Decisions Will Most Likely Involve the Use