Activity-Based Costing (ABC)

Definition

Under activity-based costing (ABC), a wide range of costs are weighted and allocated to specific products through cost drivers—the factors that cause the costs to be incurred.[1]

See also

• Direct Product Profitability (DPP)

 

References

1. ^ Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; and David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance (Second Edition). Upper Saddle River, New Jersey: Pearson Education, Inc.