In an activity-based costing (ABC)system,cost reduction is accomplished by identifying and eliminating: (CPA adapted) $$\begin{array} { | c | c | c | }
\hline & \text { All Cost Drivers } & \text { Non walue-adoled Acturities } \
\hline \text { A. } & \text { No } & \text { No } \
\hline \text { B. } & \text { Yes } & \text { Yes } \
\hline \text { C. } & \text { No } & \text { Yes } \
\hline \text { D. } & \text { Yes } & \text { No } \
\hline
\end{array}$$
A) Option A
B) Option B
C) Option C
D) Option D

Question

In an activity-based costing (ABC)system,cost reduction is accomplished by identifying and eliminating: (CPA adapted) $$\begin{array} { | c | c | c | } 
\hline & \text { All Cost Drivers } & \text { Non walue-adoled Acturities } \
\hline \text { A. } & \text { No } & \text { No } \
\hline \text { B. } & \text { Yes } & \text { Yes } \
\hline \text { C. } & \text { No } & \text { Yes } \
\hline \text { D. } & \text { Yes } & \text { No } \
\hline
\end{array}$$
A) Option A
B) Option B
C) Option C
D) Option D

Quizplus · Accepted Answer

In an ABC system, cost reduction is achieved by identifying and eliminating non-value-added activities, not all cost drivers.

In an Activity-Based Costing (ABC)system,cost Reduction Is Accomplished by Identifying