The two primary applications of strategic ABM are:

a) Deciding which products or services to make and customer profitability analysis.

b) Identifying fixed overhead costs and which customers to allocate them to

c) Eliminating non-value add activities and prioritizing customer orders

d) Creating a framework for accepting new customers and identifying variable overhead costs

e) Helping companies with multiple products decide which ones to eliminate and allocate fixed and variable overhead costs to cost objects more accurately