• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Activity based budgeting and Activity based management.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › Activity based budgeting and Activity based management.

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Ken Garrett.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 19, 2020 at 9:59 am #595562
    akka17bakka
    Participant
    • Topics: 105
    • Replies: 99
    • ☆☆☆

    Hi Tutor, hope you are doing well..

    I have gone again and again over these two topics and I am utterly confused.

    I am having difficulty in differentiating between the two. Does ABB comes after ABM or management comes first and then budgeting. Management is concerned with the acticities that incur cost to see if they add value and non-value adding activities should be eleminated. Doing things differently to achieve the same objective to reduce cost but not at the expense of quality etc..
    and after you’ve managed the activities you devise a plan and budget. Is that how it works, please?

    Thank you.

    November 19, 2020 at 7:58 pm #595668
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10594
    • ☆☆☆☆☆

    I tend to look at it as:

    1 Activity based costing. This is essential as it clarifies cost drivers and is essential for understanding costs.

    2 Based on that understanding either of ABB or ABM can occur next. For example, it might be clear that one of the fixed costs could be greatly reduced by changing operations. Eg batch set-up costs per unit can be decreased by making larger batches. Alternatively, an ABB can be drafted and then it is a matter of ABM to try to ensure that the budget is met.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • julio99 on Impairments – Impairment (CGU) – ACCA Financial Reporting (FR)
  • effy.sithole@gmail.com on EPS – diluted EPS Example – ACCA Financial Reporting (FR)
  • Ken Garrett on The Finance Function in the Digital Age – CIMA E1
  • DeborahProspect on ACCA SBR Specimen Exam 2 Question 1
  • darshan.69 on Chapter 9 Pension Schemes TX-UK FA2023

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in