Finance & Businessfreq · 1via Dusty Flow

Activity-Based Costing

/ˌæk.tɪv.ɪ.ti ˌbeɪst ˈkɔː.stɪŋ/noun
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Activity-based costing is a sophisticated accounting method that assigns overhead and indirect costs to specific activities based on their actual consumption, rather than spreading them evenly across products or services. This approach uncovers hidden inefficiencies and provides more precise financial insights, making it a game-changer for modern businesses aiming to optimize pricing and resource allocation in a data-driven world.

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