Respuesta :
Activity-based costing data blank A) is well suited to decision making
How activity-based costing helps in decision-making?
- For making strategic decisions, ABC is used.
- To calculate the costs for each customer, it evaluates the costs connected to particular activities and resources and links those costs to particular internal and external customers of the healthcare enterprise (such as patients, service lines, and physician groups).
- Then, this cost data can be modified to account for expected changes and forecast future costs.
- ABM, on the other hand, assists operations by emphasizing the reasons behind costs and ways to cut them.
- It analyzes cost factors that have an immediate impact on the price of a good or service and uses performance metrics to assess whether an activity brings about financial or nonfinancial benefits.
- ABM offers a basis for choosing areas that can be changed to reduce costs by identifying each cost driver and evaluating the value the element adds to the healthcare enterprise.
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