Activity-based costing

Cost and management accounting.

(ABC).

Activity-based costing is a more refined development of absorption costing.

Activity-based costs are allocated to cost pools, such as set-up or quality control costs.

Allocation of the pooled costs to units of production is then undertaken based on their consumption of these activities.

See also

• Absorption costing
• Budget
• Corporate financial management
• Cost centre
• Cost pool
• Costing
• Direct costs
• Financial reporting
• Fixed cost
• Job costing
• Forecast
• Management accounting
• Overheads
• Process costing
• Profit centre
• Variable cost