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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.
Establish long-term objectives Live Business News investigated that ‘The market researchers AC Nielsen expect that Aldi will expand its branch network in the few urban centers
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is formal planning hinder for success
Two useful approaches to assess feasibility in financial terms are: Ans) Funds flow and break-even examines
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