Activity-Based Costing (ABC)

Activity-Based Costing (ABC),

What is The Definition of Activity-Based Costing (ABC)?

  • Cost Per Activity (ABC) is a calculation used to allocate products and services related to general and indirect costs. This method of accounting takes into account the relationship between cost, overheads and manufactured goods, and attributes indirect costs to products in a less arbitrary manner than traditional methods of pricing. Some expenses are indirect, such as the salaries of administrative and office staff, however, it is difficult to allocate a product.

    • Activity-based costs (ABC) is a way of allocating indirect and overhead costs, such as wages and additional costs for products and services.
    • The ABC cost calculation system is based on activities that are viewed as events, work units or tasks with specific purposes.
    • An activity is a cost driver, ie a B-order or machine configuration.
    • The cost generator fee, which is the sum of the cost groups distributed by the cost generator, is used to calculate the amount of overhead and overhead associated with a particular activity.

    ABC is used to better understand costs and develop cost-effective strategies.

Literal Meanings of Activity-Based Costing (ABC)

Activity:

Synonyms of Activity

pursuit, occupation, venture, undertaking, enterprise, project, scheme, business, job, affair, task, campaign

Based:

Meanings of Based:
  1. The bottom or edge of an object, especially the part where it rests or rests.

  2. An imaginary structure or entity on which something is derived or depends

  3. A place used by the Armed Forces or any other headquarters as an operation center.

  4. An important or important element or substance to which other substances are added.

  5. Substances that react with acids form salts and water or (more commonly) can absorb or neutralize hydrogen ions.

  6. The middle part of the bipolar transistor that separates the emission from the collector.

  7. Root or root word or derivative

  8. A number used as the basis of a numerical scale.

  9. You must reach each of the four seasons to reach the race.

  10. Use something as a basis or starting point (something that has been explained).

  11. Keep it in a special place like the operational center.

  12. No bad morals.

Sentences of Based
  1. He is sitting at the foot of a tree

  2. The city's economic base collapsed

  3. Back to base

  4. Soap based on vegetable oil

  5. Nitric acid reacts with nitric salt and water production bases.

  6. The transistor consists of three parts: the base, the collector and the emitter.

  7. Children should experiment with pronouncing the roots of suffixes.

Synonyms of Based

foundation, bottom, foot, support, prop, stay, stand, pedestal, plinth, rest, bed, substructure, headquarters, centre, starting point, camp, site, station, settlement, post, medium, vehicle, carrier, found, build, construct, form, establish, ground

Costing:

Meanings of Costing:
  1. Suggested or estimated cost to manufacture or operate an item.

Sentences of Costing
  1. Accept note manual entry cost

ABC:

Meanings of ABC:
  1. Alphabet A guide to the alphabet.

  2. The basics of an article.

  3. American Transmission Company.

  4. A man of Chinese descent.

  5. Refers to or names individuals of Chinese and American descent.

Synonyms of ABC

ABC, letters, basic principles, basics, fundamentals, elements, essentials, first principles