Activities are at the heart of both ABM and ABC.

Question

Quizplus · Accepted Answer

Both Activity-Based Management (ABM) and Activity-Based Costing (ABC) are centered around identifying and managing activities to improve organizational performance and profitability. In ABM, activities are analyzed to identify opportunities for improvement, while in ABC, activities are used to allocate costs to products or services based on the resources used. Therefore, activities are an essential component of both ABM and ABC.

Activities Are at the Heart of Both ABM and ABC