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Which of the following statements regarding activity-based management is true? Select one: A. Activity-based management is...

Which of the following statements regarding activity-based management is true?

Select one:

A. Activity-based management is concerned primarily with calculating the cost of products accurately

B. Activity-based-management focuses managerial attention on what is most important among the activities performed to create value for customers.

C. Activity-based management is not possible unless activity-based costing is also used for product costing

D. All of the statements are true

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Homework Answers

Answer #1

Activity based management it has the company to enhance its operation and identify any weakness so as to provide solution for that. Activities based management it is done when a company follows activity based costing which allocates the overhead as per the activity consumed by different products in that particular ratio.

Activity based management helps the company by providing long term budgets and financial forecast by analysing the variable cost and the overhead cost of the product. This total analysing help the company to recover its weakness and enhance its strength.

Calculating cost of a product accurately is related to the activity based costing and it is it has nothing to do with activity based management however activity based management is based on activity based costing but calculating the cost of product is done in activity based costing.

Therefore the correct option is C

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