Lesson60 seconds
What is Activity-Based Costing?
Assigning using activities that actually drive cost.
Step 1 of 9
Simple Definition
Activity-based costing (ABC) allocates to products/services based on activities and cost drivers (setups, deliveries, machine hours) rather than a single blunt rate.
Explanation level
Tap a persona to hear the same idea in a totally different voice.
Try “Like I'm 5™” for a picture-book version - not the grown-up wording above.
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