Activity Based Costing

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  • October 4, 2021

What is Activity based costing

Activity-based costing (ABC) is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Activity Driver

A factor used to assign cost from an activity to a cost object. A measure of the frequency and intensity of use of an activity by a cost object.

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