Activity Based Management

and Activity Based Costing

(Introduction)
kailangan ay high quality and
and products and services natin at competitive
young cost structure natin (efficient siguro)

-para maging efficient yung cost structure natin kailangan alam natin ang dahilan
at pinanggagalingan ng costs (cost drivers) (iba ito dun sa cost predictors)
kung 'non-traditional' daw ang ating activity bases in
instead of traditional (yung basis for allocation of MOH; DL hours, Machine hours,
DL cost) mas maganda yung management information nating makukuha (mas
accurate sa tunay na cost) kaya mas ma-cocontrol natin (which will serve as a
competitive advantage)

inventories:

-held for sale (ordinary) (finished and in process) (includes goods purchased and
held for resale)

-materials and supplies to be consumed (in production or for services)

-ABM and ABC ay focuse
d daw sa actions ng organizations at yung costs na nagagawa ng mga actions na
ito. K

so, in reality raw materials daw ay lahat ng materials na gagamitin sa

manufacturing (of course, no problem!)
activity
Kapag ginamit ang ABM at ABC mas maliliwanagan tayo sa mga costs at mas
ma-cocontrol natin, at mas makakagawa tayo ng better decisions.

Activity

inventories:

-held for sale (ordinary) (finished and in process) (includes goods purchased and
held for resale)