Introduction plan: Impact of activity-based costs on the project Activity-Based Management in Practice

CONCLUSION

Activity-Based management is a comprehensive business understanding approach. Organizations adopting the ABM reap rewards of greater business process understanding and improved strategic decision making.

Performance monitoring requires measuring the cost of each activity and comparing it against the benchmarked budgets or standards. As the market competition requires fine adjustments for product costing, each cost-driven activity should be identified and measured.

This focus of performance measurement includes all activities from input resources, manufacturing or operations, and marketing and sales. The performance controls then allow the management to exhibit corrective actions.

The focus of the ABM approach remains on offering critical insights to the business managers on key business activities and cost associated with them. Performance measurement and continuous process improvements then become integral parts of the ABM approach.