What is the major difference between ABC and ABM?
A)ABC is used in managerial accounting, while ABM is used in financial accounting.
B)ABC focuses on measurement, while ABM focuses on control.
C)The goal of ABC is to accurately control costs, while the goal of ABM is to allocate costs most effectively to cost objectives.
D)There is no difference; ABC and ABM are two names for the same thing.

Question

Quizplus · Accepted Answer

ABC (Activity-Based Costing) focuses on accurately measuring costs and performance, identifying the true cost of products and services. ABM (Activity-Based Management) uses the information provided by ABC to control costs and improve processes.

What Is the Major Difference Between ABC and ABM