Activity-based management: Difference between revisions
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'''Activity-based Management''' is the process of using activities to improve process efficiency. Activity-based Management therefore provides managers with goals and targets in areas such as '''eliminating or reducing non-value added activities, increasing throughput and process efficiency.''' These goals and objectives are important aspects of management performance. Activity-based Management goals and objectives measure the quality of management decisions (embedded in some ABM activities) to achieve desired results. Activity-based Management's goals and targets are not limited to production managers. Nearly every strategic business unit manager in the organization contributes to Activity-based Management's goals<ref>Kren, L. (2018), p. 61</ref>. | '''Activity-based Management''' is the process of using activities to improve process efficiency. Activity-based Management therefore provides managers with goals and targets in areas such as '''eliminating or reducing non-value added activities, increasing throughput and process efficiency.''' These goals and objectives are important aspects of management performance. Activity-based Management goals and objectives measure the quality of management decisions (embedded in some ABM activities) to achieve desired results. Activity-based Management's goals and targets are not limited to production managers. Nearly every strategic business unit manager in the organization contributes to Activity-based Management's goals. Activity-based Management is seen as an extension of Activity-based Costing<ref>Kren, L. (2018), p. 61</ref>. | ||
==Activity-based Costing== | |||
==Footnotes== | ==Footnotes== | ||
Revision as of 14:37, 7 November 2022
Activity-based Management is the process of using activities to improve process efficiency. Activity-based Management therefore provides managers with goals and targets in areas such as eliminating or reducing non-value added activities, increasing throughput and process efficiency. These goals and objectives are important aspects of management performance. Activity-based Management goals and objectives measure the quality of management decisions (embedded in some ABM activities) to achieve desired results. Activity-based Management's goals and targets are not limited to production managers. Nearly every strategic business unit manager in the organization contributes to Activity-based Management's goals. Activity-based Management is seen as an extension of Activity-based Costing[1].
Activity-based Costing
Footnotes
- ↑ Kren, L. (2018), p. 61
References
- Kren, L. (2018). Activity Based Management (ABM) and Control System design. Accounting and Finance Research.
Author: Sven Korten
