________ focuses on observing and analysing activities as a basis for making a range of decisions,including pricing outputs,deciding on output mix,how to reduce costs,how to improve processes,product design,profitability and customer satisfaction.
A)Activity-based costing
B)Traditional costing
C)Activity-based management
D)Financial costing

Question

Quizplus · Accepted Answer

The given description aptly fits the concept of Activity-based management which emphasizes on analyzing various activities and their costs to improve decision making in pricing, production, cost reduction, process improvement, profitability, and customer satisfaction. The other options like traditional costing and financial costing do not always reflect the true costs of activities and may not be suitable for decision making in complex environments. Activity-based costing is similar to activity-based management but primarily focuses on assigning costs to different activities.

________ Focuses on Observing and Analysing Activities as a Basis