Activity Based Management - P2

Question 1

What is activity based management?

Answer 1

System of management which uses activity-based cost information for a variety of purposes including cost reduction, cost modelling and customer profitability analysis

Question 2

What are the five basic information outputs of ABM?

Answer 2

Cost of activities and business processes
Cost of non value-added activities
Activity based performance measures
Accurate product/service cost
Cost drivers