Please sir the words ABC,ABM and EVA are abbreviated from wthat words?.Sorry for disturbance sir?

ABC stands for Activity-Based-Costing, ABM is for Activity-Based-Management while EVA is for Economic Value Added. All these abbreviations are inter-related. ABC is cost allocation techniques used in an evironment where mutiple products are being manufactured using some common facility like machines, production halls and common services like security, transport and storage.

ABC is a refined method of cost allocation for each product. ABM is extension of ABC as it uses the information provided by ABC for decision-making like dropping a product, encouraging product, price revisions. While ABC considers manufacuring costs as well as Operating Expenses as product cosst, EVA takes into account financial Cost of the same products.

If we implement ABC-EVA, we will deal with total costs and expenses and would not leave a single pie as unallocated and to be charge to the company ( not to the product ).

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