Discuss the refinements that have been made to enhance the efficiency and effectiveness of ABC for use in managing costs . A refinement of ABC costing used in activity-based management (ABM) is the activities being classified as either value-added or non-value-added. ABM is a management control technique that uses ABC information to identify strategies for removing resource waste from operating activities in order to reduce costs and improve customer value. Under ABC, each of the activities also needs to be categorized as either value-added or non-valued-added. Value-adding activities contribute value directly to the manufacture of the products or rendering of the services that the customer is willing to pay for. Thus, all steps required to manufacture a product or enhance its quality or reliability are
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