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Activity-based management starts with activity analysis. The four steps in activity analysis are: 1. Chart,...

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Accounting

Activity-based management starts with activity analysis. The four steps in activity analysis are: 1. Chart, from start to finish, the activities used to complete the product or service 2. Classify activities as value-added or non-value-added 3. Eliminate non-value-added activities 4. Continuously improve and reevaluate the efficiency of value-added activities or replace them with more efficient activities. The value-added activities identified in Step 2 make up the a. low cost solution. b. critical path. c. optimal solution. d. value chain.

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