Activity-based costing (ABC) Definition A costing method based on activities that is designed to provide managers with cost information for strategic and other decisions that potentially affect capacity and therefore fixed costs. Recommended Books ! Or Download E accounting book in MS-word format for
An activity base definition is a computation of whatever affects the incurred of a variable cost. An activity base definition relates to production activity that is used to describe factory overhead to production.
Activity Based Costing System A Tool for Management to Aid Decision Making: Learning Objectives: Define and explain activity based costing (ABC) system. How various manufacturing and non-manufacturing costs are treated under activity based costing system? What are advantages and disadvantages of ABC system Definition