The primary objective of activity-based management is:
A)To develop more accurate product costs.
B)To reduce and eliminate non-value added activities.
C)To increase product quality.
D)To identify instances of internal failure.

Question

Quizplus · Accepted Answer

The primary objective of activity-based management is to reduce and eliminate non-value added activities in order to increase efficiency and profitability. While developing more accurate product costs and improving product quality may be secondary objectives of activity-based management, they are not the primary focus. Identifying instances of internal failure may be a part of the process, but it is not the primary objective.

The Primary Objective of Activity-Based Management Is