Activity-based management focuses on using the cost 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 is a cost management approach that focuses on identifying and analyzing the activities that contribute to the production and selling of products. The objective of activity-based management is to identify and eliminate non-value added activities, which are activities that do not contribute to the value of the final product but still consume resources. Therefore, the statement is true.

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