INTRODUCTION TO ABM Activity-based management (ABM) is a method of identifying and evaluating activities that a business performs using activity-based costing to carry out a value chain analysis or a re-engineering initiative to improve strategic and operational decisions in an organization. Activity-based management, regardless of the industry, takes information from financial reporting, management reporting and, most importantly, activity-based costing. The information guides management to the areas of concern and facilitates resolution to identified problems. ABM provides a proactive approach to streamlining processes and improving profits. By using ABM, companies can experience lowered product/service costs and a better understanding…show more content… • Which preferential treatment campaigns seem to be generating considerable revenue and high growth, but are actually producing lower than anticipated profits, or in some cases, a loss? After using this system, Taipei Fubon Bank has adjusted the benefits and services offered to its cardholders, significantly improving division profitability. Backed by solid, verifiable and clean data, each step of Fubon Bank’s decision-making process is more accurate, leading to better decisions, faster.
CONCLUSION ABC can be applied in service industries other than those described here. It has become increasingly important for companies whose markets are becoming more competitive. Since ABC is really about cost management, using it allows service companies to reduce and control their costs in order to make correct pricing and other decisions, and to increase their profitability. It is likely to continue to become more prevalent in the service industry in the