The following are excerpts from a conversation between two mangers about their companies activity-based systems. Identify the
The following are excerpts from a conversation between two mangers about their companies’ activity-based systems. Identify the manger who works for a company that emphasizes ABM and the one who work for a company the emphasizes a lean system.
Manager 1: We try to manage our resources effectively by monitoring operating or eliminating the ones that don’t add value to our products. Our product costs are more accurate since we allocate activity costs to products and services.
Manager 2: We’re very concerned with eliminating waste to reduce costs. We‘ve designed our operations in flexible work cells to reduce the time it takes to move, store, queue, and inspect materials. We’ve also reduced our inventories by buying and using materials only when we need them.
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