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Essay Details:
Essay text:
Thus Activity Based Management (ABM) was introduced to enable managers to understand and improve the product profitability, customer profitability & the cost of the business processes. ABM includes cost driver analysis, activity analysis, and performance measurement.
Over time, ABM has evolved considerably and is now being applied in manufacturing, service companies, utilities, logistics, telecommunications, government bodies and many more sectors.
Objective:
It focuses Management on two clear objectives.
1. To ensure that cost effective methods are used to produce current products to current
customers at a price that generates the maximum positive ABM Product and Customer
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