Cost management is the process of estimating, allocating, and controlling project costs. The cost management process allows a business to predict future expenses to reduce the chances of budget overrun. Projected costs are calculated during the planning phase of a project and must be approved before work begins.
ABM mainly focuses on the business processes and managing activities aimed at deriving organisational objectives.Activity-based management (ABM) is a means of analyzing a company’s profitability by looking at each aspect of its business to determine strengths and weaknesses.
ABM is used to help management find out which areas of the business are losing money so that they can be improved or cut altogether.