ABC meaning in Military and Defence ?

Answer:

What is Activity Based Costing mean?

Activity-based costing (ABC) is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each. Therefore this model assigns more indirect costs (overhead) into direct costs compared to conventional costing.

CIMA, the Chartered Institute of Management Accountants, defines ABC as an approach to the costing and monitoring of activities which involves tracing resource consumption and costing final outputs. Resources are assigned to activities, and activities to cost objects based on consumption estimates. The latter utilize cost drivers to attach activity costs to outputs.

The Institute of Cost & Management Accountants of Bangladesh (ICMAB) defines activity-based costing as an accounting method which identifies the activities which a firm performs and then assigns indirect costs to cost objects.

reference

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Alumni Of Bluffton College	Academic & Science
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American Botanical Council	Academic & Science
American Bibliographical Center	Academic & Science
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Analyze, Bill, and Control	Accounts and Finance
Accountability Basics and Control	Accounts and Finance
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