ACTIVITY BASED MANAGEMENT Definition

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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

MINORITY INTEREST is the interest or percentage ownership of a group of stockholders who, in total, own less than 50% of the shares in the corporation.

EBIAT is Earnings Before Interest After Taxes. It  is a measure of a company's ability to produce income on its operations in a given year. See NOPAT.

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