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Asked by Olivia Egede on Jun 30, 2024

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Which of the following statements is/are false?
i. Determining the cause of non-value-added activities requires cost driver analysis.
ii. Building activities into processes will quickly identify the causes of non-value-added activities.
iii. Identifying root cause cost drivers is sufficient to enable non-value-added activities to be eliminated.

A) i and ii
B) ii and iii
C) i and iii
D) All of the given answers

Cost Driver Analysis

The examination of the factors that affect costs, aiming to understand the relationship between actions or volumes and their impact on expenses.

Non-value-added Activities

Tasks or processes that do not contribute to customer value or enhance a product, potentially leading to unnecessary costs.

  • Comprehend the foundations of activity-based management (ABM), highlighting its dedication to customer value and the optimization of cost management.
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Zybrea KnightJul 04, 2024
Final Answer :
B
Explanation :
ii is false because building activities into processes may not quickly identify the causes of non-value-added activities; it's a more complex process involving analysis and understanding of the activities. iii is false because identifying root cause cost drivers, while important, is not alone sufficient to enable non-value-added activities to be eliminated; action must be taken based on that identification.

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