Activity-Based Costing And Activity-Based Management

Topics:
Strategic Management Tools
Tags:
Activity,
Activity Based Costing,
Activity-based Management,
Finance,
Managerial Accounting,
Marketing,
Pricing
Source:
Pearson Education

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Overview: Activity Based Costing (ABC) system traces cost incurred to the activities involved therein. It explores the relationship between activities and costs. ABC refines costing systems by focusing on individual activities as the fundamental cost object. It assigns costs to cost objects based on the activities undertaken to produce each product or service. Such a costing method improves cost measurement by organizing information around activities. It is used in the Activity Based Management (ABM) approach towards managing activities and reducing costs. The paper discusses the principles of ABC and ABM using numerical examples and charts.

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Format: HTML | Size: 196KB | Date: Jan 2003 | Pages: 60

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