Which of the following is a systematic way for organizations to identify and eliminate activities that add costs but not value to the product?
A)customer profitability analysis.
B)activity analysis.
C)systems analysis.
D)cost-based analysis.

Question

Quizplus · Accepted Answer

Activity analysis is a systematic approach to identify and eliminate non-value-added activities that contribute to the cost of production but do not add value to the product. It helps organizations to streamline their operations and reduce costs, thus improving their profitability. Customer profitability analysis is a different approach that focuses on identifying the most profitable customers for the organization. Systems analysis is a method of studying the overall structure and functioning of a system, while cost-based analysis is a technique for determining the cost of producing goods or services based on the actual expenses incurred.

Which of the Following Is a Systematic Way for Organizations