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

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.