Customer Value Is an Important Part of Activity-Based Management and It

question 76

Multiple Choice

Customer value is an important part of activity-based management and it enables an organisation to achieve both cost reduction and improved customer value through the use of which of the following?
i.Identifying major opportunities for cost reduction
ii.Determining root causes of these costs.
iii.Developing programs to eliminate the causes of these costs.iv.Introducing performance measures to monitor the effect of these programs.

• A) i,ii and iv
• B) i,ii and iii
• C) ii,iii and iv
• D) All the given answers

---

Definitions:

Fiat Money

Money not redeemable for any commodity; its status as money is conferred initially by government decree but eventually by common experience.

Fiat Money

Currency that has value and is legally recognized for transactions solely because of a government decree, without backing by a physical commodity.

Fractional Reserves

A banking system in which banks hold a fraction of their depositors' funds in reserve, lending out the remainder to earn interest.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen, representing the benefits an individual, investor, or business misses out on when choosing one option over another.