Glossaria.net

Glossary Logistics / Term

Activity-Based Costing (ABC)

A methodology that measures the cost and performance of cost objects, activities, and resources. Cost objects consume activities and activities consume resources. Resource costs are assigned to activities based on their use of those resources, and activity costs are reassigned to cost objects (outpputs) based on the cost objects proportional use of those activities. Activity-based costing incorporates causal relationships between cost objects and activities and between activities and resources.

Permanent link Activity-Based Costing (ABC) - Creation date 2021-12-06


< Activity-Based Budgeting (ABB) Glossary / Logistics Activity-Based Costing Model >