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.
Glossary
Actuator
Actuator is motor for inducing movement in a mechanism or system. An electronic control system uses actuators to adjust a device or machine, for example, to open or close a valve.