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activity based management

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Financial Dictionary

Activity Based Management - ABM

Using an activity-based costing system to improve the operations of an organization.

Investopedia Commentary

Many managers will attempt to use an activity-based costing system to identify the source of deficiencies in the system. Once the deficiency is identified, the manager can then attempt to correct it to improve efficiency.

Related Links

Evaluating A Company's Management

See also: Accounting, Activity Based Budgeting, Supply-Chain Management, Zero-Based Budgeting

Also spelled: ABM

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