Which of the following statements is incorrect in comparing activity-based management (ABM)and lean operations?
A)Both identify value-adding and nonvalue-adding activities
B)ABM uses a simpler accounting system
C)Both are activity-based systems
D)Lean manufacturing reorganizes production activities into workcells

Question

Quizplus · Accepted Answer

ABM does not necessarily use a simpler accounting system compared to lean operations. In fact, ABM can involve complex accounting techniques such as activity-based costing in order to identify and manage costs associated with different activities.

Which of the Following Statements Is Incorrect in Comparing Activity-Based