Which of the following are true regarding activity-based management (ABM)?
A)ABM deals with how management uses the cost information generated from activity-based costing.
B)ABM rests on the premise that products require activities.
C)ABM rests on the premise that activities consume resources.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

ABM focuses on the relationship between activities, costs, and business processes. It uses the cost information generated from activity-based costing to identify and eliminate non-value-added activities, optimize processes, and allocate resources more effectively. The premise of ABM is that products require activities, and these activities consume resources. Therefore, all of the answers are correct.

Which of the Following Are True Regarding Activity-Based Management (ABM)