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Activity Based Costing (ABC) and Activity Based Management (ABM) are methods used to manage and improve business processes by examining, and modifying, the costs of the activities contributing to the production and delivery of a particular product or service.


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The Stage

In the face of constant competition many organisations are being forced to reinvent themselves in order to remain at the cutting edge of business. These organisations are continually being required to revise and update the products and services that they offer to customers. A good knowledge of the cost structures associated with producing, delivering, and servicing their offerings is of vital importance in order to keep up with business leaders. ABC and ABM methodologies provide the tools and the knowledge base for making informed decisions - decisions which relate to the pricing, management, and improvement of products and services. 

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