Activity-Based Management - Accounting

The video tutorial explains how activity-based costing can transition into activity-based management. It emphasizes the importance of distinguishing between value added and non-value added activities for better cost management. Value added activities enhance the product's appeal to customers, while non-value added activities consume resources without increasing product value. Understanding these concepts helps managers make informed decisions to reduce costs and improve product quality.

What new insight or understanding did you gain from this video?

Evaluate responses using AI:

OFF