ACTIVITY-BASED MANAGEMENT - ABM

Undertakings whose origins may be traced back to the 1980's for analyzing the business' processes and identifying its weaknesses and strengths. Particularly, activity-based management looks for sections wherein the business is losing money in order for it to be improved or eliminated and increase the profitability. The ABM inspects the costs of overhead, distribution, equipments, employees, facilities and other factors within a business to identify and allocate activity costs.