Q10RQ - Horngren'S Financial And Managerial Accounting

Question

Question: List two ways managers can use ABM to make decisions.

Step-by-Step Solution

Answer

Answer

Pricing and management decision.

Step 1: Meaning of ABM

Activity-based cost data is employed to influence administration choices in activity-based management (ABM), a systematic, coordinated methodology that increases productivity and fulfils customers.

Step 2: Two ways managers can use ABM to make decisions

Managers may use ABM to make decisions about pricing, product mix, and cost management, such as calculating target prices and costs.