Activity-based management (ABM) relies on which of the following for its major source of data?
A) An activity-based costing (ABC) system.
B) A standard cost accounting system.
C) An absorption cost accounting system rooted in generally accepted accounting principles (GAAP).
D) The American Society of Mechanical Engineers (ASME).

Question

Quizplus · Accepted Answer

Activity-based management (ABM) primarily relies on data from an activity-based costing (ABC) system. ABC provides detailed information on the costs associated with specific activities, which is crucial for ABM's focus on managing activities to improve value to customers and profitability.

Activity-Based Management (ABM) Relies on Which of the Following for Its