Which of the following decisions will most likely involve the use of activity-based management?
A)decisions related to the financing of an investment using equity or debt
B)decisions related to the expansion operations in a particular geographic location
C)decisions related to the pricing of a product
D)decisions related to the payment of dividends

Question

Quizplus · Accepted Answer

Activity-based management involves identifying and analyzing the activities involved in a business process and using that information to make decisions related to improving efficiency, reducing costs, and increasing profitability. Pricing decisions involve analyzing the costs of producing a product or providing a service, which can be determined through activity-based costing. Therefore, decisions related to pricing a product are most likely to involve the use of activity-based management. Choices A, B, and D may involve financial analysis and planning, but do not necessarily involve activity-based management.

Which of the Following Decisions Will Most Likely Involve the Use