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Management Accounting: Concepts,
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Chapter 8 ABM Exhibits

James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida

Chapter 8 | MAAW's Textbook Table of Contents

As noted in Chapter 8, Johnson's ABM model is conceptually different from the model advocated by CAM-I, Turney and others. Figure 8-12 shows the ABM model based Johnson's separation of the concepts into Activity Management, Activity Costing and Activity Based Product Costing. Note that the cost components are disconnected from activity management. Johnson's view is that processes and work should be managed, not costs.

ABM Model Based on Johnson's Framework

Figure 8-13 shows the CAM-I ABM model as described by Turney.

CAM-I ABM Model

Figure 8-14 shows how activity costing and activity based product costing are connected to activity management in the CAM-I model.

ABM Model Based on the CAM-I Framework

An operational model might de-emphasize the cost side for process performance measurements and management while still using the cost information for strategic decisions related to products.

Operational ABM Model

ABC and PVB Unit Cost Compared