Use the following to Ans questions :
Lawrence Corporation has recently performed a value-added analysis and ranking of activities. Presented below is an analysis of one sub-activity cost, sorted by value and cost:

-Under Activity-Based-Management, suggesting across-the-board percentage reductions in cost
A) Is an effective way to have all departments look for waste and inefficiency
B) Is a strong motivational tool since all departments are required to "share the pain equally."
C) Will likely ignore the causes of waste because non-value-added activities may occur disproportionately in an organization
D) Both A and B

Question

Use the following to Ans questions :
Lawrence Corporation has recently performed a value-added analysis and ranking of activities. Presented below is an analysis of one sub-activity cost, sorted by value and cost:
 
-Under Activity-Based-Management, suggesting across-the-board percentage reductions in cost
A) Is an effective way to have all departments look for waste and inefficiency 
B) Is a strong motivational tool since all departments are required to "share the pain equally." 
C) Will likely ignore the causes of waste because non-value-added activities may occur disproportionately in an organization 
D) Both A and B

Quizplus · Accepted Answer

Activity-Based Management (ABM) focuses on identifying and eliminating non-value-added activities. Suggesting across-the-board percentage reductions in cost does not address the specific causes of waste and inefficiency, which ABM aims to target. Instead, it treats all areas equally without considering where the most significant improvements can be made.

Use the Following to Ans Questions