Activity-Based Management (ABM)
Activity-Based Management (ABM) is a management approach that uses activity-based costing data to improve business processes and decision-making. ABM focuses on analyzing activities to identify inefficiencies, reduce costs, and enhance value creation. It is a tool for operational and strategic management.
Related glossary terms
Activity-Based Costing (ABC)
Activity-Based Costing (ABC) allocates overhead to activities by resource use. It gives more accurate cost data than traditional costing to support decisions.
Activity-Based Planning (ABP)
Activity-Based Planning uses ABC data to forecast resource needs and align activities with strategy. It improves budgeting accuracy and supply chain planning.
Activity-Based Costing System
An activity-based costing system collects and allocates costs via ABC procedures. It enables accurate cost tracking for strategic and operational decisions.
Key Performance Indicator (KPI)
Key Performance Indicator (KPI) is a measurable logistics metric—such as on-time delivery rate or inventory turnover—used to evaluate and guide operational…
