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Introduction to Activity Based Costing (ABC)
Internet ABC Online Presentation

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Table of Contents

Activity Based Costing (ABC)

A typical situation in a small manufacturing firm

Common beliefs

Reality

Why is a new cost management system needed?

Why is the knowledge of the “true” cost of a product so important ?

Why is the knowledge of the “true” cost of a product so important ? (cont)

Major factors for determination of market price

Ways to determine object cost

Total cost for a cost object

Traditional Cost Accounting (TCA)

TCA in a company

TCA in a company (cont)

Activity Based Costing (ABC)

ABC Basic Premise

When to use ABC

ABC Steps

ABC Illustration 1. Identify activities

ABC Illustration 2. Determine activity cost

ABC Illustration 3. Determine cost drivers

ABC Illustration 4. Activity data

ABC Illustration 5. Product cost calculation

Product cost TCA vs. ABC

Summary of ABC approach





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Activity-Based Costing (ABC) Economic Value Added (EVA) Internet Website Guide:
ABC and EVA Internet Website Guide

On the Development of a Combined Activity-Based Costing (ABC) and Economic Value Added (EVA)
System for Small Businesses:

ABC-and-EVA-Based System

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This page last updated 28 May 1998.
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