Applying activity-based management to increase sustainable profitability - an exploratory study

Abstract

This research aims to apply ABM in promoting sustainable profitability. And introducing the ABM system and its impact on corporate profitability and defining the concept of sustainable development and the extent to which it can be achieved, begins with introducing the basic concepts and principles of ABM, including activity identification, cost drivers, and value analysis. The paper then examines how ABM can drive profitability and sustainable growth through several strategies. Through the use of an analytical and descriptive approach, ABM encourages performance measurement and continuous improvement. By tracking activity-based costs, organizations can monitor performance indicators related to sustainability, such as energy consumption, waste generation, and carbon emissions. This enables organizations to identify areas for improvement, set goals, and monitor progress towards sustainable development and profitability.

The researchers concluded that the application of the ABM system helps to reduce costs through the process of analyzing the value of the activities.