What does the ABC Method focus on in the context of activity-based costing?

The ABC Method, or Activity-Based Costing, is primarily focused on identifying and measuring the costs associated with various activities that are involved in the production process. This methodology breaks down overhead costs by assigning them to specific activities, allowing businesses to understand how much each activity costs and how they contribute to the overall production process.

By pinpointing activities and tying costs directly to them, organizations can gain insights into where resources are being consumed and how efficiently they are utilized. This approach helps businesses make informed decisions regarding process improvements, cost management, and pricing strategies based on the true costs associated with their operations.

In contrast, the other choices do not align with the core principles of the ABC Method. Reducing labor costs, establishing a uniform pricing method, and minimizing waste are broader objectives that may be influenced by insights gained through activity-based costing, but they are not the primary focus of this method itself. The essence of the ABC Method is fundamentally about understanding and measuring activities, making it a powerful tool in cost management and operational efficiency.