What are the two main views of activity-based cost?

The two main views of activity-based cost are best identified as process and cost. This approach to cost management focuses on understanding the relationship between activities and their associated costs. By analyzing costs at the activity level, organizations can gain insights into how resources are consumed in processes, allowing them to identify inefficiencies and areas for improvement.

In this context, the process view emphasizes the workflow and the sequence of activities, while the cost view is concerned with the financial implications of those activities. This dual perspective is fundamental in activity-based costing as it enables organizations to allocate costs more accurately based on the resources used in each specific activity, leading to better budgeting, pricing decisions, and overall strategic planning.

The other choices focus on different aspects that do not fundamentally capture the core of activity-based costing. For instance, staffing relates more to human resource management, while customer and supplier aspects are more about relationships in supply chain management. Therefore, recognizing cost through the lens of specific processes provides a clearer, more actionable framework for organizations looking to refine their cost management strategies.