Final answer:
The statement is true. The purpose of an activity-based cost management system is to appropriately manage activities in order to minimize costs and maximize customer value by providing detailed cost information linked to specific activities.
Step-by-step explanation:
The statement that the overall objective of an activity-based cost management system is to manage activities to reduce costs and improve customer value is true.
An activity-based costing (ABC) system is designed to provide detailed information on the costs associated with various activities undertaken to produce a product or provide a service.
The system identifies the activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each.
This allows businesses to more accurately attribute costs to products and services that cause or drive the costs. By doing so, management can identify high overhead costs per unit and find ways to reduce them.
Additionally, understanding the cost drivers can help managers focus on improving activities that add value to the customer, thus enhancing customer value.