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There are some aspects of the future about which we cannot be certain, but we can be reasonably sure of what the possibilities are. Here, contingency planning is useful. A good example is planning for a military invasion. Every possibility is identified and analyzed and a suitable action plan prepared, because time is of the essence, once a possibility has become a reality. Finally, there are some aspects of the future, which cannot be anticipated. Here, responsiveness planning can be used, i.e. building flexibility into the organization.
(See Adaptive Planning)
Activity-Based Costing: Activity Based Costing (ABC) increases the accuracy of cost information by linking overhead and other indirect costs to product or customer segments more precisely...
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