Which of the following are true regarding activity-based cost management (ABCM)?
A)ABCM has two parts,the costing part known as activity-based costing and the management part known as activity-based management.
B)ABCM rests on the premise that products require activities.
C)ABCM rests on the premise that activities consume resources.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

All of the statements are true regarding activity-based cost management (ABCM). ABCM involves both activity-based costing which assigns costs to activities and activity-based management which uses ABC information to manage and improve processes. It is founded on the premise that products require activities to be produced and that each activity consumes resources, thereby recognizing the cost of each activity and its impact on the final product cost.

Which of the Following Are True Regarding Activity-Based Cost Management