Activity-Based Costing
Activity-Based Costing (ABC) is an advanced costing method developed by Robert Kaplan and Robin Cooper that allocates overhead and indirect costs to products or services based on their actual consumption of activities. Rather than using arbitrary allocation bases (e.g., machine hours or direct labor), ABC traces costs to specific activities (purchasing, machine setup, quality control) and then to products based on which products actually consume those activities, providing more accurate product costs for decision making.
Source record
Citations copied verbatim from the method’s source record. No claim-level verification is inferred from them.
- Cooper, R., & Kaplan, R. S. (1991). Profit priorities from activity-based costing. Harvard Business Review, 69(3), 130-135. · DOI 10.1007/978-3-322-93138-2_22
- Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2015). Managerial accounting (15th ed.). McGraw-Hill Education. · URL
Curated claims
Claims persisted in the evidence ledger, each with its own assessment.
This view does not invent a claim assessment when the ledger has none.
Related methods
Generated from the method graph and shown as machine-suggested relations — no evidence claim is inferred.