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What is 'Working Capital Management'. Working capital management refers to a company's managerial accounting strategy designed to monitor and utilize the two components of working capital, current assets and current liabilities, to ensure the most financially efficient operation of the company.
In recent years, government organizations have begun to look to private industry for ideas on how to improve their business practices and their efficiency in resource use. Activity-based cost management (ABC/M) is one of the most important tools being introduced in the effort to achieve these ends.