Activity-based costing

Activity-based costing (ABC) is a costing methodology which identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each. Activity-based costing model assigns more indirect costs into direct costs compared to conventional costing.

Activity Based Costing

Activity based costing is a costing technique that is based on the cost calculations of all the activities that happen while running a business operation. The activity based costing use an approach of costing where cost of all the activities is assigned to all