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. value chain.

d. optimal solution.