Which of the following best describes a methodology that informs managers what the real cost of processes are and provides a basis of maximizing profit by encouraging profitable processes and discouraging unprofitable ones?
A) Value management framework
B) Total cost of ownership
C) Performance measurement
D) Activity-based management

Question

Quizplus · Accepted Answer

Activity-based management is a methodology that identifies and analyzes activities within an organization and uses this information to inform managers about the cost of processes. By identifying the real cost of processes, managers can maximize profit by encouraging profitable processes and discouraging unprofitable ones.

Which of the Following Best Describes a Methodology That Informs