# Activity-Based Planning (ABP)

Activity-Based Planning (ABP) is a planning approach that uses activity-based costing information to forecast future costs and resource requirements. ABP helps organizations align their activities with strategic objectives, optimize resource allocation, and improve budgeting accuracy.

## 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 Management (ABM)**](/content/glossary/activity-based-management-abm/index.html)  
Activity-Based Management uses ABC cost data to improve processes, reduce costs, and add customer value. It supports both operational and strategic decisions.

- [**Activity Level**](/content/glossary/activity-level/index.html)  
Activity level is the volume of operations in a period—units produced or transactions processed. It guides cost management and resource allocation in logistics.

- [**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.

## Get your containers back on track