In chapter 4, we saw how ABM fits into a number of overarching frameworks of measurement and improvement. In chapter 6 we will see how ABM is used in a 'real life' example to illustrate how ABM handles costs to assign them to activities then onwards to products, channels and customers.
However, before going into an example it is wise to take a few moments to describe how ABM views the treatment of costs, which differentiates it from traditional accounting approaches. This chapter explains the way ABM handles costs and the characteristics of activities compared to conventional approaches as well as introducing the language of ABM.
