Activity-based management (ABM) is a method of identifying and evaluating activities that a business performs using activity-based costing system. Activity-based costing establishes relationships between overhead costs and activities.In Activity-Based Management system involves overhead costs can be more precisely allocated to products, services, or customer segments. Activity-based management system focuses on managing activities to reduce costs and to improve customer value.
Activity based management can be defined as a method where all the activities within in a business are identified and evaluated using the costing method called activity based costing. In other words activity based management is a method through which administration finds out how
Activity-Based Management (ABM) Definition Activity based management is a management approach that focuses on managing activities as a way of eliminating waste and reducing delays and defects. Recommended Books ! Or Download E accounting book in MS-word format for just 20 $ - Click