- Words: 1782
- Length: 6 Pages
- Topic: Business - Management
- Paper #: 62530718
ABC can identify high overhead costs per unit and find ways to reduce the costs, avoid decreases in head counts due to inaccurate allocation of costs, and measure profitability with higher accuracy than traditional costing that uses direct-labor hours as the only cost driver (Activity-based costing, n.d.).
Activity-based costing (ABC). (n.d.). Retrieved Apr 2, 2009, from Managers-Net: http://www.managers-net.com/activityBC.html
Activity-based costing (ABC): What is it and how can reengineering teams use it?