Organisations interested in using activity-based management must first implement an activity-based costing system.

Question

Quizplus · Accepted Answer

Activity-based management relies on accurate and detailed cost information which can be obtained through an activity-based costing system. Without this system, it would be difficult to identify and manage cost drivers, and allocate resources effectively. Therefore, it is essential to have an activity-based costing system in place before implementing activity-based management.

Organisations Interested in Using Activity-Based Management Must First Implement an Activity-Based