Activity-based management (ABM) is defined as: The implementation of an activity-based costing system in a service company, such as a management consulting firm The identification and selection of activities to minimize the value of the activities while maximizing their cost from the perspective of the final consumer of the product or service. The process of identifying the cost drivers to be used in calculating the per-activity rate for each cost pool in an activity-based costing system. The identification and selection of activities to maximize the value of the activities while minimizing their cost from the perspective of the final consumer of the product or service

On december 31, 2016, the decarreau, andrew, and bui partnership had the following fiscal year-end balance sheet: cash $10,000accounts receivable $20,000inventory $25,000plant assets - net $30,000loan to decarreau $18,000total assets $103,000accounts payable $14,000loan from bui $15,000decarreaua, capital (20%) $32,000andrew, capital (10%) $23,000bui, capital (70%) $19,000total liab./equity $103,000the percentages shown are the residual profit and loss sharing ratios. the partners dissolved the partnership on january 1, 2017, and began the liquidation process. during july the following events occurred: * receivables of $18,000 were collected.* all inventory was sold for $15,000.*all available cash was distributed on january 31, except for$8,000 that was set aside for contingent expenses.the book value of the partnership equity (i.e., total equity of the partners) on december 31, 2016 isa. $58,000b. $71,000c. $66,000d. $81,000