Activity-based costing, or ABC, is a costing method that managers can use for internal cost reporting and decision making. While ABC isn't allowed for external financial reporting, companies may find ...

Activity-based costing (ABC) is a method of assigning costs to products or services based on the resources that they consume. Its aim, The Economist once wrote, is “to change the way in which costs ...

Product-based costing is a relatively simple form of allocating direct and indirect costs to individual units of product. Activity-based costing is a more intricate system that assigns costs to ...

Analyzing costs can help companies make strategic, financially sound decisions. Activity-based costing and absorption costing are two popular accounting methods that companies employ when evaluating ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

The COVID-19 pandemic has strained hospital revenue because of reduced patient volumes and expenses related to the virus. To improve their financial picture, organizations must make cost-reduction ...

Product costing is a methodology associated with managerial accounting, i.e., accounting intended to serve management in an operational context rather than to measure corporate performance as such, ...

Activity-based costing (ABC) is an accounting method that allows businesses to gather data about their operating costs. Costs are assigned to specific activities—planning, engineering, or ...