Activity-based costing is the tool used in an ABM environment to assign activity costs to cost objects.

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Activity-based costing (ABC) is a method of assigning costs to products, services, or other cost objects based on their use of activities. It is often used in an Activity-Based Management (ABM) environment to identify and analyze the costs and profitability of various activities within an organization. ABC involves identifying the specific activities that are necessary to produce a product or service and assigning costs to each activity based on its usage. This allows for a more accurate allocation of costs to products or services, and can help managers to make better decisions about pricing, product mix, and resource allocation.

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