ACTIVITY BASED MANAGEMENT – IS IT A SUITABLE APPROACH FOR CURENT CRISIS BUSINESS ENVIRONMENT?

Andrei Pelin

Abstract


Activity-based management is a management control technique that focuses on the resource costs of organizational activities and processes, and the improvement of quality, profitability and customer value. This technique uses activity based costing information to identify strategies for removing resource waste from operating activities. Main tools employed include: strategic analysis, value analysis, cost analysis, life-cycle costing, and activity based budgeting. As well, activity based management uses activity-based cost information for a variety of purposes, including cost reduction, cost modeling, and customer profitability analysis. But is it a suitable approach to solve problems of organizations in such a business environment as the current one? Thus the main aim of this paper is to define what a business crisis environment is and establish the extent to which the usual problems that business organizations are confronted with in a crisis environment find suitable solutions with a full scale use of ABM.


Keywords


activity-based management; activity-based costing; crisis management

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LUCRĂRI ȘTIINȚIFICE MANAGEMENT AGRICOL

ISSN print 1453-1410
ISSN online 2069-2307
(former ISSN 1453-1410, E-ISSN 2069-2307)

PUBLISHER: AGROPRINT Timisoara, Romania
PAPER ACCESS: Full text articles available for free
FREQUENCY: Annual
PUBLICATION LANGUAGE: English

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Banat's University of Agricultural Sciences and Veterinary Medicine "King Michael I of Romania" from Timisoara
Faculty of Agricultural Management
300645, Timisoara, Calea Aradului 119, Romania

E-mail: tabitaadamov2003 [at] yahoo.com
Phone: +40-256-277439, Fax.: +40-256-277031