ACTIVITY BASED MANAGEMENT Definition

ACTIVITY BASED MANAGEMENT (ABM) converts Activity Based Costing (ABC) into a system to manage an organization. Activity Based Management not only focuses on product, service, customer, channel costing, it also emphasizes: cost drivers (root cause analysis), action plans to improve to achieve strategic objectives, and, performance measures for activities and processes.

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APPLICATION RATE is the quantity (mass, volume or thickness) of material applied per unit area.

INSOLVENCY occurs when a business is unable to pay debts as they fall due.

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