1. Activity-Based Management and Enterprise Excellence -- 2. The Changing Service Environment -- 3. Activities, Activity Management, and Cost Management -- 4. Why Activities? -- 5. Activity Analysis -- 6. Activities of an Enterprise -- 7. Activity Cost -- 8. Calculating an Activity Cost -- 9. Tracing Activity Cost -- 10. Activity Service Cost -- 11. Activity-Based Budgeting -- 12. Activity Management -- A Process Approach -- Appendix: Activity-Based Management Examples.
Summary
This groundbreaking book examines why traditional managerial accounting methods have become obsolete in a new age of advanced technology and information systems. It discusses why they can only treat the symptoms rather than the root causes of problems and why they are incapable of measuring and making visible the actual costs of providing a service - a key to eliminating wasteful activities. Activity-Based Management argues that activities - the basic components of an organization and the building blocks for analyzing costs - must be the backbone of any contemporary managerial system. It reveals how activity management highlights those resources that drive costs, focuses corporate strategy, supports continuous improvement, enhances decision support systems, and ensures that plans are transmitted to a level at which effective remedial actions can be taken.