Activity-Based Management Homework Help

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Are you really interested in learning about activity based management? If you take a glance at activity-based management homework help from us, you will easily get a sound knowledge of the subject.

When did it originate and what does it do to help the organization?

  • The concept first originated in 1980’s for accurate analyzing of the different processes of a business
  • It is used to identify the strengths and weaknesses of a company
  • Activity based management tends to identify the areas where the company is losing its money or its shares.
  • It then tries to eliminate those areas of weaknesses for the sake of company’s benefits
  • They also tries to figure out how the condition of the business can be improved in order to increase its profit
  • It also analyzes the following:
  1. Cost of equipment
  2. Cost of facilities
  3. Cost of employees
  4. Cost of distribution
  5. Various other factors responsible for determining and allocating the costs

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Where can this activity based management are applied?

  • It can be applied to a number of different companies which includes
  1. Service providers
  2. Non- profits
  3. Manufacturers
  4. Different types of schools and government agencies
  • In any kind of area in business, activity based management is able to provide cost information
  • Besides, enhancing the profit factor the ABM analysis is able to provide a better precise and accurate budgets
  • It is also able forecast the financial condition in an accurate manner

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What are the main stages in ABM?

  • First you need to identify the activities that the organization is supposed to perform
  • Secondly, calculate all the cost of that activity
  • Thirdly, identifying the activity cost driver for each and every activity

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