Operating efficiency improves with ABM through the use of ABC information to better manage:
A) Customer profitability
B) Direct material costs
C) Advertising costs
D) Budgets

Question

Quizplus · Accepted Answer

ABM helps improve operating efficiency by using ABC information to better manage customer profitability. By identifying which customers are the most profitable, companies can focus their resources on serving those customers and develop strategies to attract more profitable customers. This can lead to increased revenue, reduced costs, and overall better financial performance. Direct material costs, advertising costs, and budgets can also be managed through ABM, but the primary focus is on customer profitability.

Operating Efficiency Improves with ABM Through the Use of ABC