Which of the following statements regarding activity$-$based cost management $($ABCM$)$ is false?

Multiple Choice

Storing materials, work$-$in$-$process items, and finished goods in inventory are essential, value$-$added activities in most companies.

The basic concepts used in activity$-$based costing $($ABC$)$ to determine product costs can also be used to determine customer profitability and evaluate suppliers.

Activity$-$based cost management $($ABCM$)$ uses the information provided by activity$-$based costing $($ABC$)$ to identify ways to improve operations.

Activity$-$based cost management $($ABCM$)$ can be used for managerial decision$-$making in service, merchandising, and manufacturing companies.