Activity-based costing is the tool used in an ABM environment to assign activity costs to cost objects. Balance sheets can be created for any cost object of an organization.

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Activity-based costing is the method used to allocate costs to specific activities, and then to allocate those costs to specific cost objects such as products, customers, or projects. This approach can help organizations gain a more accurate understanding of the costs associated with different cost objects and can lead to more informed decision-making. Balance sheets can be prepared for any cost object, as they provide a snapshot of the financial position of that object at a specific point in time.

Activity-Based Costing Is the Tool Used in an ABM Environment