How does activity-based costing affect the value chain?

Activity-based costing allows managers to identify inefficiencies in the value chain and plan ways to reduce overhead costs.

Activity-based costing allows managers to minimize inventory and increase productivity to lower overall costs throughout the value chain.

Activity-based costing allows managers to eliminate defects and increase product value by purchasing higher quality raw materials.

Activity-based costing allows managers to add the cost of sales and marketing to the final price of the product to enhance company value.