Purchasers can use activity-based costing to:

A) eliminate nonvalue-adding activities.
B) reduce activity occurrences.
C) reduce the cost driver rate.
D) eliminate nonvalue-adding activities and reduce the cost driver rate.
E) eliminate nonvalue-adding activities,reduce activity occurrences and reduce the cost driver rate.

Activity-Based Costing

A costing methodology that assigns costs to products and services based on the resources they consume, aiming for more accurate product costing and profitability analysis.

Nonvalue-Adding Activities

Tasks or processes that consume resources but do not add value or contribute to the customer's satisfaction or product's final worth.

Cost Driver Rate

A measure used in cost accounting to assign the costs of an activity to products or services, based on the extent of the activity they require.