Activity Based Costing

Activity Based Costing

The ABC method has some detractors – there are some that feel the cost and effort to derive ABC costs outweigh any benefits derived from the information. Over-complex ABC analysis is definitely not necessary. However, some ABC analysis is essential in any business environment that wishes to get a more accurate understading of its product and customer profitability….

Use Activity Based Costing to Optimize Prices

Many large businesses have implemented price optimization software to determine their costs and optimum prices to charge customers. Small and mid-sized businesses can achieve the same benefits by using activity-based costing (or ABC)…

Service Businesses Can Benefit from Activity Based Costing

There is a mistaken assumption that activity-based costing is only beneficial to manufacturing businesses – service businesses can also achieve the same benefits by using it…

Activity-Based Costing Doesn’t Need Expensive Technology

Activity-based costing (ABC) is a cost analysis and decision support tool that doesn’t require the use of expensive technology in order to benefit from it. This article recommends conducting a thorough manual ABC analysis before implementing any ABC software.