Activity-Based Planning (ABP)
Activity-Based Planning (ABP) is a planning approach that uses activity-based costing information to forecast future costs and resource requirements. ABP helps organizations align their activities with strategic objectives, optimize resource allocation, and improve budgeting accuracy.
Related glossary terms
Activity-Based Costing (ABC)
Activity-Based Costing (ABC) allocates overhead to activities by resource use. It gives more accurate cost data than traditional costing to support decisions.
Activity-Based Management (ABM)
Activity-Based Management uses ABC cost data to improve processes, reduce costs, and add customer value. It supports both operational and strategic decisions.
Activity Level
Activity level is the volume of operations in a period—units produced or transactions processed. It guides cost management and resource allocation in logistics.
Activity-Based Costing System
An activity-based costing system collects and allocates costs via ABC procedures. It enables accurate cost tracking for strategic and operational decisions.
