DBC's simplicity and its ability for practitioners to tie it to activity-based management
may be attractive to companies.
This states that candidates should be able to "apply the techniques of activity-based management
in identifying cost drivers/activities".
John Ortiz, partner at Tatum who was involved with the project, calls activity-based management
a foundation for six-sigma, a business management strategy, long used in manufacturing, that is used to identify causes of defects.
(ABM) is a discipline that focuses on the management of activities to maximize the profit from each activity and to improve the value for customers (Johnson, 2007).
The Activity-Based Management
(ABM) is a managerial accounting method based on an innovative cost determination as it attributes costs to the different activities performed within the company value chain for then sharing them between the different outputs.
The eighth edition adds chapters on activity-based management
and lean accounting, and an appendix on joint product costing.
As the book notes, activity-based management
plays a central role in making such a system work effectively.
encompasses ABC and uses it as a major source of information.
We have an excellent cost- and activity-based management