An integrated framework for activity-based decision making

Abstract

Activity-based costing (ABC) data have the potential to inform a wide range of management decisions. Recently the term Activity-based management (ABM) has emerged to describe any application of ABC data, but there is currently no framework which pulls together the disparate strands of potential uses. We have conducted a systematic review of internationally reported ABC applications to produce an integrated and comprehensive ABM framework for management decision making. Traditional methods of costing are critically evaluated as a precursor to explaining the ABC model. We go on to illustrate our ABM framework with case examples. © 1998, MCB UP Limited