Activity-based management (ABM) is defined as: a. The implementation of an activity-based costing system in a service
Question:
Activity-based management (ABM) is defined as:
a. The implementation of an activity-based costing system in a service company, such as a management consulting firm.
b. The identification and selection of activities to minimize the value of the activities while maximizing their cost from the perspective of the final consumer of the product or service.
c. The process of identifying the cost drivers to be used in calculating the per-activity rate for each cost pool in an activity-based costing system.
d. The identification and selection of activities to maximize the value of the activities while minimizing their cost from the perspective of the final consumer of the product or service.
Step by Step Answer:
Managerial Accounting For Undergraduates
ISBN: 9780357499948
2nd Edition
Authors: James Wallace, Scott Hobson, Theodore Christensen