Activity-based costing and activity-based management are effective in helping managers do all of the following except
A)trace technology costs to products.
B)promote excellence standards.
C)identify only value-added activities.
D)analyze performance problems.

Question

Quizplus · Accepted Answer

Activity-based costing and activity-based management help managers identify all activities involved in producing a product or providing a service, and assigning costs to each activity based on its usage. This allows managers to identify non-value-added activities and eliminate or reduce them, which leads to increased efficiency and reduced costs. Therefore, option C stating that activity-based costing and management identify only value-added activities is incorrect.

Activity-Based Costing and Activity-Based Management Are Effective in Helping Managers