THE ROLE OF ABC IN MANAGEMENT DECISION-MAKING

Activity-Based Costing/Management (ABC/M) is an Information System developed and overcome some of the limitations of traditional cost accounting and to enhance its usefulness to strategic management decision-making. In this paper, we show how an ABC/M system can serve as a useful information system to support effective operations decision-making processes. By viewing an ABC/M system as an enabler to improve the operations decision-making, we demonstrate that these systems enable an operations manager to enhance the quality of the decision-making process.

ABC, ABM, implementation process, profitability