Activity-Based Management

Activity-based management involves managing individual employee activities with a focus on implementation, planning, and measurement. Its main purpose is to enhance cost accounting, reduce costs, and allocate costs appropriately for future planning and budgeting. While it may seem like micromanaging, it is essential for effective operational processes.

What is the primary focus of activity-based management in the context of employee activities?

• To increase employee workload

• To reduce employee turnover

• To manage individual employee activities

• To enhance employee satisfaction

Which of the following is a key aspect of implementing activity-based management?

• Ignoring employee feedback

• Focusing solely on profit

• Planning and measuring activities

• Reducing employee benefits

What is the ultimate goal of activity-based management?

• To expand business operations

• To increase company profits

• To focus on cost accounting and reduction

• To enhance employee skills

How does activity-based management help in future planning?

• By hiring more employees

• By reducing work hours

• By allocating costs appropriately

• By increasing employee salaries

Which of the following is NOT a focus of activity-based management?

• Cost allocation

• Future budgeting

• Employee micromanagement

• Cost reduction