The process of using ABC information to evaluate the costs and benefits of production and internal support activities is called:
A) Activity-based management
B) Activity-based budgeting
C) Activity-based costing
D) Activity-based consulting

Question

Quizplus · Accepted Answer

Activity-based management is the process of using activity-based costing information to evaluate the costs and benefits of production and internal support activities. It involves analyzing ABC data to identify opportunities to reduce costs, optimize resource allocation, and improve operational efficiency. Activity-based budgeting focuses more on using ABC information to develop budgets, while activity-based consulting is a broader term that can refer to any consulting services related to ABC or other management techniques. Activity-based costing is the process of assigning costs to activities based on their consumption of resources.

The Process of Using ABC Information to Evaluate the Costs