In an activity-based costing (abc) system, cost reduction is accomplished by identifying and eliminating
a. all cost drivers
b. non-value-adding activities

b. Non-value-Adding Activities

Explanation:

As per the concept of Activity Based Costing System, all the costs are allocated to each product or department based on activity drivers.

Under this all the activities are found and cost drivers are allocated for each activity and on such basis proper cost allocation is done.

Under this further non value adding activities are identified and eliminated.

Cost drivers are not eliminated but cost are allocated based on such activities.

Therefore correct option is

b. Non-value-Adding Activities

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.