Lavender Company is a logistics company and has recently implemented ABC system. Using activity-based information, it decides to reduce the bulkiness of the packages delivered, thereby reducing costs. This suggests that ABC system helps managers in ________ decisions.
A) pricing
B) product-mix
C) process-improvement
D) product-design

Question

Quizplus · Accepted Answer

The decision to reduce package bulkiness is related to process-improvement, which is a decision that can be informed by activity-based information provided by ABC system. This suggests that ABC system can help managers optimize their processes and reduce costs, leading to improved efficiency and profitability. While ABC system may also provide information that could inform pricing, product-mix, and product-design decisions, these decisions are not specifically mentioned in the scenario presented.

Lavender Company Is a Logistics Company and Has Recently Implemented