Activity-Based Management

Activity-based management involves managing individual employee activities with a focus on implementation, planning, and measurement. Its main purpose is to enhance cost accounting, reduce costs, and allocate costs appropriately for future planning and budgeting. While it may seem like micromanaging, it is essential for effective operational processes.

What does the implementation and measurement of activities involve in the context of activity based management?

In what ways does activity based management aim to reduce costs?