1. 1 Activity Based Management ABC – Activity Based Costing (pl. rachunek kosztów działań) ABCM – Activity Based Cost Management ABM – Activity Based Management (pl. zarządzanie kosztami działań)  Evolution of the its use: –... From a system oriented at product unit cost calculation... –... to one concentrated on process and activities management.

2. 2 Use of ABM information  To grow the enterprise: –eliminate non-value adding activities –improve processes and activities  To maintain operational level: –identify non-value generating activities –set priorities to improve processes and their implementation –separate and eliminate cost-generating variables –specify product/service costs  To lower production volume: –reduce costs –reduce production capacity –manage downsizing  To increase production capacity: –specify product/service costs –take decisions regarding products/services –specify capacities of production processes (analyse bottlenecks)

3. 3 ABM cycle  improve processes  reduce costs  limit economies of scale  redefine economic processes  activity management  benchmarking  improve processes  reduce costs  limit economies of scale  redefine economic processes  activity management  benchmarking Processes  budgeting  profitability analysis  measuring effectiveness of activities  valuing inventory  utilise production capacity  budgeting  profitability analysis  measuring effectiveness of activities  valuing inventory  utilise production capacity Measuring the effectiveness  project costing  measuring effectiveness of projects  predict / value costs  target costing  price calculation models  project costing  measuring effectiveness of projects  predict / value costs  target costing  price calculation models Take decisions