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Business Intelligence > Activity-Based Management (ABM)
The following information is about Activity-Based Management (ABM).
Activity-Based Management (ABM) Defined
Activity-based management (ABM) is the use of the activity-based costing tool by process owners to control and improve their operations. Because process analysis is conducted in the building of an activity-based cost model, management knows its business much better and can consequently evaluate value-added and non-value-added activities. Because a certain volume of work produces a certain outcome, What if analysis can be conducted to determine what resources are required of operations are scaled back or expanded.*
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