The system that 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 is called.
A)Activity-based management
B)Contemporary cost control
C)Functional-based cost management system
D)JIT

Question

Quizplus · Accepted Answer

Activity-based management is a cost management system that 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. It involves identifying activities that add value to the final product or service and eliminating activities that do not add value. This helps in reducing costs and increasing efficiency, thereby improving the overall profitability of the organization. Contemporary cost control and functional-based cost management system are not specific to the objective mentioned in the question. JIT (Just-in-Time) is focused on delivering products quickly and efficiently without wasting resources, but not necessarily on improving value received by the customer.

The System That Focuses on the Management of Activities with the Objective