Activity Based Management (ABM)

It is a new level of information combining financial and operational data in a way that both can be used for improved decision making. It is a management information tool not a financial evaluation model. To fulfill this purpose requires that the information system take into account both the operational processes of the organization and the resources costs as represented in the financial system. These are then combined in such a way that they provide information on how the organization consumes resource and costs and capture the total costs in the financial system.