An objective of activity-based management is:
A)to encourage top-level management to manufacture low-quality products.
B)to encourage cost reduction through continuous improvement techniques.
C)to increase the number of activities necessary to perform processes.
D)to increase the costs incurred in manufacturing a competitive product.

Question

Quizplus · Accepted Answer

The objective of activity-based management is to encourage cost reduction through continuous improvement techniques. It focuses on identifying activities that add value to the final product or service, and eliminating or reducing non-value-added activities or waste. By doing so, efficiency, productivity, and profitability can be increased. Encouraging top-level management to manufacture low-quality products, increasing the number of activities, or increasing costs would not align with this objective.

An Objective of Activity-Based Management Is