Activity-based costing is a method of accounting which is very useful in making outsourcing decisions by doing
A) total quality management.
B) value-chain analysis.
C) reengineering.
D) MBO.
E) benchmarking.

Question

Quizplus · Accepted Answer

Activity-based costing helps in identifying the costs associated with each activity in the value chain. This information is useful in making outsourcing decisions as it helps in identifying which activities can be performed more efficiently by an outside vendor, resulting in cost savings for the company. Therefore, value-chain analysis is the best choice for this question.

Activity-Based Costing Is a Method of Accounting Which Is Very