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Indianapolis: Activity-Based Management of City Services Questions: 1. Should ABC analysis be appropriate tool for not-for-profit organization (NFPO)? Does the goal of cost-efficiency conflict with the objective of a NFPO? ABC analysis is an appropriate tool for a NFPO. It is an important first step. In these types of organizations especially it is important to use funding wisely and justify costs/activities to the taxpayers. The city of Indianapolis was already in trouble prior to this initiative because they didn't understand their activities and costs and were wasting taxpayer dollars. In this case there was no previous system for understanding activities or costs. In the case of the Dept. of Transportation, a budget of $61M was said to be required. Year-after-year, a percentage increase was requested with no justification for the increase. ABC/ABM provides the appropriate processes for analyses. The objective of an NFPO, such as a city government, is to provide services to the...

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