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Q. Explain Activity based management?
Activity based management (ABM) is about satisfying customers whilst making fewer demands on internal resources. The aim is that once cost drivers are created, organisations can aim to reduce cost, by creating models for more effective planning and control. ABM can lead towards the elimination or reduction of non-value added activities e.g. customer returns, complaints and obsolesce of stock. By eliminating activities which don't add value to customers, an organisation may still satisfy customers and at the same time make fewer demands on organisations resources.
Question: The steps in value chain analysis are to examine the company's primary activities and support activities. (a) Elucidate the primary and support activities. (b)
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Are arrangements whereby two or more companies work in collaboration without formal relationships, where there is mutual benefit in doing so
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