Traditional costing answers, "What did we spend?" Activity-Based Costing answers, "Why did we spend it, and who should pay for it?"
ABC is powerful but detailed. It works best when the cost of errors from traditional costing is high—think complex manufacturing, diverse service lines, or multi-channel retail. activity based cost definition
Have you implemented ABC in your organization? What was your biggest insight—or hurdle? Let’s discuss below. 👇 Traditional costing answers, "What did we spend