Activity Based Management: Improving Processes and Profitability - Chapter 3, so What Is ABM?

Topics:
Strategic Management Tools
Tags:
Activity Based Costing,
Activity-based Management,
Better Management.com,
Finance,
Managerial Accounting,
Marketing,
Pricing
Source:
Better Management.com

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Overview: Initially Activity Based Costing (ABC) was presented as a means of establishing product costs more accurately. The emergence of Activity Based Management (ABM) provided a means of enhancing profitability. ABM is underpinned by a theory of resource consumption with activities viewed as giving rise to costs, as in ABC, but taking the analysis further in a way that provides management with insights into managing the business overall. Essentially, these insights are focused on a process view of the business and a deeper understanding of product, channel and customer profitability.

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