Bunny Company has two production plants. Recently, the company conducted an ABM
ID: 2622332 • Letter: B
Question
Bunny Company has two production plants. Recently, the company conducted an ABM study to determine the cost of activities involved in processing orders for parts at each of the plants. How might an operations manager use this information to manage the cost of processing orders?
A. Set up an ABC costing system
B. Identify benchmarks
C. Compare the cost to process an order at each plant and the nature of the orders to determine if costs are out of control. If out of control, investigate
D. Close down the plant with the highest cost to increase profits
A. Set up an ABC costing system
B. Identify benchmarks
C. Compare the cost to process an order at each plant and the nature of the orders to determine if costs are out of control. If out of control, investigate
D. Close down the plant with the highest cost to increase profits
Explanation / Answer
D. Close down the plant with the highest cost to increase profits
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.