COST ACCOUNTING
ACTIVITY BASED MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Design products and services
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Signal either continues or discontinues
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Guide product mix & investment decisions
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Choose among alternative suppliers
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All of the above
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Detailed explanation-1: -ABM is used to help management find out which areas of the business are losing money so that they can be improved or cut altogether. ABM often makes use of information gathered with activity-based costing (ABC), a means of identifying and reducing cost drivers by better use of resources.
Detailed explanation-2: -ABC is a methodology that can yield significant information about cost drivers, activities, resources and performance measures. However, ABM is a discipline that offers the organisation the opportunity to improve the value of its products and services.
Detailed explanation-3: -ABC means Activity Based Coasting and ABM means Activity Based Management. Both the ABC and ABM are management tools that help in managing business activities. These two help in improving the performance of a business firm or an organization.
Detailed explanation-4: -Accountancy, Business and Management (ABM) Strand.