Activity Performance Measurement increases the efficiency of necessary activities by using economies of scale. Specifically, the of the cost driver is increased without increasing t total cost of the activity itself. This lowers per-unit cost of the cost driver and the amount of cost traceable to the products that consume the activity. For example, a new product can be designed to use components already being used by other products. By using existing components, the activities associated with these components already exist, and the company avoids the creation of a whole new set of activities.