_______________ focuses on the management of activities with the objective of improving the value received by the customer and the profit received by providing this value.
A) Activity-based management
B) Contemporary cost control
C) Functional-based cost management system
D) JIT

Question

Quizplus · Accepted Answer

Activity-based management (ABM) is a strategic management tool focused on improving the value received by the customer while increasing profitability for the provider. ABM specifically targets the activities that drive costs and seeks to improve their efficiency and effectiveness without sacrificing quality. Contemporary cost control (B) is a more general term generally used to describe the process of managing costs across an organization. Functional-based cost management (C) is a cost management system focused on breaking down an organization into its core functions and managing costs on a function-by-function basis. JIT (D) is a production management philosophy aimed at reducing waste and improving efficiency through just-in-time delivery of goods and services. While JIT can contribute to cost savings, it is not specifically focused on improving the value received by the customer or increasing profitability.

_______________ Focuses on the Management of Activities with the Objective