Activity-based management involves looking for ways to reduce
A)unused capacity.
B)value-added capacity.
C)income taxes.
D)employee morale.

Question

Quizplus · Accepted Answer

Activity-based management focuses on optimizing resource allocation by identifying and eliminating unused or underutilized capacity, such as excess inventory or idle employees. This can lower costs and increase efficiency. While employee morale is important, it is not the primary focus of activity-based management. Value-added capacity is a desirable aspect of production, not something to be reduced. Income taxes may be affected by the changes made through activity-based management, but they are not the main objective.

Activity-Based Management Involves Looking for Ways to Reduce