Activity-Based Costing & Management

The video tutorial discusses the four primary functions of management: planning, organizing, leading, and controlling, with a focus on planning and controlling. It emphasizes the need for accurate metrics in decision making and introduces activity based costing (ABC) as a management accounting approach for internal use. ABC allocates costs to activity pools, providing precise cost allocation and aiding in better decision making. It helps trace indirect costs to specific activities, allowing managers to evaluate profitability and make informed decisions.

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