Managers can use activity-based management to control environmental costs.

Question

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Activity-based management (ABM) is a management approach that identifies and manages the activities that drive costs in an organization. By using ABM techniques, managers can control environmental costs by identifying and measuring the activities that contribute to those costs, and then taking actions to reduce or eliminate them. For example, a company may use ABM to track its energy consumption and identify ways to reduce its use of electricity, water, or other resources.

Managers Can Use Activity-Based Management to Control Environmental Costs