Activity based management - part 1
Taught by Nick Drape · AI tutor support included
In this lesson, you'll learn what activity-based management is and how it differs from activity-based costing. Activity-based management extends ABC principles by using the detailed cost information to drive real business improvements—making your organisation more profitable and efficient.
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In this lesson
- 0:00 Activity-Based Costing overview
- 0:29 Understanding cost drivers and rates
- 1:51 Activity-Based Management defined
- 2:44 Operational vs strategic ABM
- 3:50 Long-term profitability improvements
About this lesson
You'll explore how CIMA distinguishes between operational ABM (short-term efficiency gains through cost driver analysis) and strategic ABM (long-term profitability improvements through fundamental business changes). By understanding your activities and cost drivers, you can identify where to reduce costs, eliminate non-value-adding activities, and make informed decisions that genuinely transform performance.
Duration: 5m
Transcript
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