Introduction To: Activity Based Management, Activity Based Costing, Activity Based Budgeting Information
- Topics:
- Strategic Management Tools
- Tags:
- Activity Based Budgeting,
- Activity Based Costing,
- Activity-based Management,
- Business Structures,
- Finance,
- Financial,
- Managerial Accounting,
- Marketing,
- Pricing
- Source:
- Value Creation Group
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Overview: This paper gives an insight into the three main strategic management tools known as: 1. Activity Based Management, 2. Activity Based Costing, and 3. Activity Based Budgeting information. All of these three play important role in developing a successful strategy. Activity based management focuses on managing activities/business processes to achieve organizational objectives, reduces cost drivers and non-value and transfers resources to economic value creating activities/business processes the customer wants and is willing to pay for, creates performance measures for cost, time, quality, and outcomes so everyone understands how their activities contribute to the mission and strategy. ABC is a subset of ABM. ABC improves costing by tracing expenses (e.g. salaries, supplies, rent) to activities and tracing activities to business processes, products, services, customers, distribution channels, etc. and Activity Based Budgeting (ABB) is a technique for enhancing the accuracy of financial forecasts and increasing management understanding. When automated, it rapidly and accurately produces financial plans and models based on varying levels of volume assumptions.
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Format: HTML | Date: Jan 2003 | Pages: 1
