Activity-Based Cost Systems For Management

Topics:
Strategic Management Tools
Tags:
Activity,
Activity Based Costing,
Finance,
Managerial Accounting
Source:
Northern Michigan University

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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. ABC is an activity-centric cost management mechanism. Such a mechanism helps in accurate cost measurement since costs herein are computed on the basis of activities that take place. The paper examines various issues involved in ABC.

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Format: HTML | Size: 93KB | Date: Jan 2003 | Pages: 27

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