A wellminusdesigned, activityminusbased cost system helps managers make better decisions because information derived from an ABC analysis: A. is easy to analyze and interpret. B. emphasizes how managers can achieve higher sales. C. takes the choices and judgment challenges away from the managers. D. can be used to eliminate nonvalueminusadded activities.

The correct answer is the option D: can be used to eliminate non value minus added activities.

Explanation:

To begin with, an Activity Based Cost Analysis consists in a way of analyze the costs that came from the activities that are done in order to achieve a final product that is intended to be sold. Moreover, in this system the main basis is in the assigment of the activities to the cost of the product and therefore that using this method a company can approximate the value of the product to its maximun because the indirect costs are envolve as well. That is why, by using this model the manager can eliminate non value mins added activities that he is noticing that are not as important as the company thought it was, or even more activites that are being costed to only one product in a huge product lining.

answer; lags, push the econ below the natural level of output;