|
Eliminating non-value added costs using ABM |
- Identifying Activities.
- Identifying non-value added activities.
- Understanding activity linkage, root causes and triggers.
- Establishing performance measures.
- Reporting non value added costs.
|
| ABM seeks to satisfy following customers needs |
- Lower costs.
- Higher quality.
- Faster response time.
- Greater innovation.
|
| Customer Profitability Analysis |
| Customer profitability analysis uses activity-based costing to determine the activities, costs and, profit associated with serving particular customers. |
