Using Activity-Based Management Models

The foundation of Activity-Based Management is the ability to create models that replicate your organization's business processes so that you can analyze how costs flow through your customers, departments, and channels, thus letting you increase your understanding of the relationships between resources, activities, and cost objects.

To use a model in Activity-Based Management, first define it within the system by selecting a rate type that specifies how Activity-Based Management should calculate the monetary amounts for each object in the model.