Discuss how activity-based costing and activity based management support continuous improvement in an organization

Activity based costing and activity based management help management do the right things the right way. They can be used in conjunction with each other to support continuous improvement, short lead times, and flexible manufacturing by helping managers to accomplish the following tasks:

1 . Identify and monitor significant technology costs.
2 . Trace technology costs directly to products.
3 . Increase market share.
4 . Identify the cost drivers that create and/or influence costs.
5 . Identify non-value added activities.
6 . Understand the impact of new technologies on performance and translate these innovations into improved production.
7 . Analyze performance and promote standards of excellence.

Business

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