Strategic activity based management refers to:

a) Making the organization more efficient by reducing the cost of the activities and eliminating those activities that do not add value

b) Apportioning the costs of each activity among the different products that use them, based on the use of the drivers by each product

c) Deciding which products to make, and which customers to sell to, based on the more accurate analysis of product and customer profitability that activity based costing allows>

d) Identifying costs of conformance (appraisal and prevention costs) and costs of non-conformance (internal and external) failure costs

e) Enabling organizations to more accurately calculate quality related costs and to monitor improvements