Activity-Based Management - An Overview (Technical …

Activity-Based Management and Activity-Based costing (ABM/ABC)have brought about radical change in cost Management has grown largely out of the work of the Texas-basedConsortium for Advanced Manufacturing-International (CAM-I). Nolonger is ABM s applicability limited to manufacturing principles and philosophies of Activity-Based thinking applyequally to service companies, government agencies and processindustries. The acronym itself has evolved from ABC to ABCM (activ-ity- based cost Management ) to ABM, and the application of ABCevolved from a manufacturing product costing orientation to a man-agement philosophy of activity Management applied in industries andorganisations other than manufacturing. Activity-Based costing and Activity-Based Management have beenaround for more than fifteen years. Most forward-thinking compa-nies have implemented them, or are in the process of doing so. ABC is not a method of costing , but a technique for managing theorganisation better.

Activity-based management makes this cost and operat-ing information useful by providing value analysis, cost drivers, and performance measures to initiate, drive or support improvement efforts and to improve decision-making. What is the difference between activity-based costing and activity-based management? ABC has been around for some time.

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  Performance, Based, Management, Activity, Costing, Activity based management, Based costing

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