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Activity-Based Costing (ABC)

In recent years, ABC has lost ground in the metric wars. But it may be set for a resurgence.

David M. Katz, CFO.com | US
December 31, 2002

Some other factors...

A quick note from the ABC frontline... along with what's said in the article, there are other factors that make ABC a more practical option now than it was a few years ago. For one, technology has advanced to the stage where various software solutions can not only deal with the number-crunching required, but also data warehousing applications can provide the information - the "drivers" - required to apportion costs to activities and on to cost objects.

The other interesting technology advance is in integrated software suites, where ABC is being combined with scorecarding and driver-based planning and budgeting to help organizations manage their performance. It turns out that the ABC drivers are very tightly linked to the performance metrics, so it's a good fit.

If you want to join in with more ABC discussions, try The ABC Blog.

Posted by Steve Mainprize | August 15, 2006 12:15 pm

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