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Activity-based management (ABM) is defined as: The implementation of an activity-based costing system in a service...

Activity-based management (ABM) is defined as:

The implementation of an activity-based costing system in a service company, such as a management consulting firm

The identification and selection of activities to minimize the value of the activities while maximizing their cost from the perspective of the final consumer of the product or service.

The process of identifying the cost drivers to be used in calculating the per-activity rate for each cost pool in an activity-based costing system.

The identification and selection of activities to maximize the value of the activities while minimizing their cost from the perspective of the final consumer of the product or service.

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Answer #1

The correct answer is

The identification and selection of activities to maximize the value of the activities while minimizing their cost from the perspective of the final consumer of the product or service.

Activity based management involves allocating costs using Activity based costing and then taking relevant decisions to improve operations of the company

The process of identifying cost drivers falls under activity based costing

The focus is to minimize cost and not maximize it

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