Companies that want to be more globally competitive can consider the implementation of activity-based management (ABM). Such companies often have used other initiatives that involve higher efficiency, effectiveness, or output quality. These same initiatives are typically consistent with and supportive of ABM.
a. In what other types of “initiatives” might such global companies engage?
b. How might ABM and activity-based costing (ABC) help a company in its quest to achieve world-class status?
c. For any significant initiative, senior management commitment is generally required. Would it be equally important to have top management support if a company were instituting ABC rather than ABM? Justify your answer.
d. Assume that you are a member of top management in a large organization. Do you think implementation of ABM or ABC would be more valuable? Explain the rationale for your answer.