# Activity-Based Management (ABM)

Activity-Based Management (ABM) is a management approach that uses activity-based costing data to improve business processes and decision-making. ABM focuses on analyzing activities to identify inefficiencies, reduce costs, and enhance value creation. It is a tool for operational and strategic management.

## Related glossary terms

- [**Activity-Based Costing (ABC)**](/content/glossary/activity-based-costing-abc/index.html)  
Activity-Based Costing (ABC) allocates overhead to activities by resource use. It gives more accurate cost data than traditional costing to support decisions.

- [**Activity-Based Planning (ABP)**](/content/glossary/activity-based-planning-abp/index.html)  
Activity-Based Planning uses ABC data to forecast resource needs and align activities with strategy. It improves budgeting accuracy and supply chain planning.

- [**Activity-Based Costing System**](/content/glossary/activity-based-costing-system/index.html)  
An activity-based costing system collects and allocates costs via ABC procedures. It enables accurate cost tracking for strategic and operational decisions.

- [**Key Performance Indicator (KPI)**](/content/glossary/key-performance-indicator-kpi/index.html)  
Key Performance Indicator (KPI) is a measurable logistics metric—such as on-time delivery rate or inventory turnover—used to evaluate and guide operational…

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