Activity Based Costing and GAAP Accounting Rules
What Is Activity‑Based Costing (ABC)? Activity‑Based Costing (ABC) assigns overhead and indirect costs to products and services based on the actual activities that drive those costs. Instead of using a single plant‑wide allocation base (such as machine‑hours), ABC creates multiple cost pools that are tied to specific activities – set‑up, order processing, customer support, etc. … Read more