One Way to Implement Activity-Based Management Is to Take a Fresh

question 30

Short Answer

One way to implement activity-based management is to take a fresh look at the activities performed in an organization to see if a business process can be changed so as to reduce costs.As part of a team responsible for implementing an activity-based costing system,you are to investigate business processes for your company and specifically investigate processes in products that are not profitable.You have been introduced to the terms Process Improvement and Business Process Reengineering.

Required:

Define activity-based management and list four ways managers use activity-based costing information and define process improvement and business process engineering.

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Definitions:

Compensation Costs

Compensation costs are the total expenses that an employer spends on an employee's wages, benefits, and other forms of remuneration.

Cross-Training

A training technique in which individuals or team members learn different skills or roles to enhance versatility and understanding across functions.

Flexibility

The ability to adapt or adjust to new conditions, changes, or environments.

Extrinsic Rewards

Motivators external to the job itself, such as salary, benefits, and recognition, that influence an individual’s performance.