ABC EVOLUTION - THE NEXT STEP FOR ACTIVITY-BASED MANAGEMENT

If left unattended, ABC information will stagnate and loose much of it s value over time. But when efforts are made to revise and enhance ABC information, paying close attention to its accuracy timeliness, and a pplicability, ongoing ABM will most likely succeed. On the other hand, if efforts associated with updating ABC information remain time-consu ming and laborious, which is typical of ''first pass'' ABC model devel opment, and if management does not successfully apply the information for action-oriented decision making, ongoing ABM usually won't succeed . Similarly, if management believes the resulting benefits of ABC info rmation are not worth the efforts required to obtain and sustain it, A BM will be impossible. Therefore, it is vital for management to facili tate ABC evolution. They can do this by increasing both the efficiency of maintaining ABC information, as well as the effectiveness of apply ing it.