Activity-based management focuses on

• analyzing activities and identifying the cost dri¬ vers of those activities.

• classifying activities as value-added or non-value- added (which includes business-value-added) and striving to eliminate or minimize the non¬ value-added costs.

• making certain that customers perceive an equi¬ table relationship between product selling price and value.

• improving processes and controlling operations.

• analyzing performance problems.

• translating company goals into organizational activities.

LO.1