Activity-Based Costing
Prompt
What is activity-based management (ABM)?
How is ABM different from Activity-Based Costing (ABC)?
How many cost pools are there in an ABC system?
What four steps are taken to develop an ABC system?
Explain why ABC is considered more accurate than traditional costing methods.
Discuss two ways managers can use ABM to make decisions.
Demonstrate how ABM can be used by service companies.
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