3 A B C D E F G H I J K L M N O P Q R S T U V W Y

Activity Based Costing

Activity Based Costing (ABC) is a costing method which identifies and estimates the cost of each activity (including use of resources), and allocates costs to each product and service as a direct consumed cost. This enables companies to identify non value-add costs, the profitability for each product and service, and areas for process improvements.