CEVAP:

Companies with various products, can get better costing information by using Activity Based Costing (ABC) and Activity Based Management (ABM). ABM focuses on the primary activities of a company, determines the cost of activities, and then uses the cost information to make decisions that will lead to improved customer satisfaction and the greater profitability. Activity-based costing (ABC) focuses on activities as the fundamental cost objects. The total production process will be divided into activities and cost of the activities will be determined. Then costs will be assigned to products based on how much the production uses those activities to make the product. The costs of those activities become building blocks for allocating the indirect costs of products, services, and customers.