Activity-based management uses activity-based costs to make decisions that increase profits while meeting customer needs.

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Activity-based management is a strategic approach that focuses on activities within an organization that add value to customers. It uses activity-based costs to identify and prioritize activities that contribute to profitability and customer satisfaction. By analyzing activities and costs, managers can make informed decisions about resource allocation and process improvement, with the goal of increasing profits while meeting customer needs.

Activity-Based Management Uses Activity-Based Costs to Make Decisions That Increase