ACTIVITY BASED MANAGEMENT Definition

Bookmark and Share

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.

Learn new Accounting Terms

FINANCIAL GEARING reflects any borrowing that the company may have undertaken. Operating income will become more volatile with increased financial gearing (borrowing). Thus the shares will have more risk attached to them. More borrowing, more risk. See GEARING and OPERATIONAL GEARING.

PRE-TAX INCOME/PROFIT see PROFIT BEFORE TAXES.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.