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Introduction about ABC-:

Activity Based Costing (ABC) is an accounting technique that allows an organization to determine the actual cost associated with each product and service produced by the organization without regard to the organizational structure. It is developed to provide moreaccurate ways of assigning the costs of indirect and support resources to activities, bushiness processes, products, services, and customers. ABC systems recognize that many organizational resources are required not for physical production of units of product but to provide a broad array of support activities that enable a variety of products and services to be produced for a diverse group of customers. The goal of ABC is not to allocate common costs to products. The goal is to measure and then price out all the resources used for activities that support the production and delivery of products and services to customer

Introduction of case study-:

In this case study of activity based costing in an Australian academic library. An academic library consume significant percent of university resources. Increase the pressure to deliver library service while information technology is also unable to maintain all library services. There is typical approach in Australian library for using ABC COSTING method. There is different activities contain library services like ordering, accessioning, processing, cataloging etc all activity are triggered by cost driver like no of problem, no of students no of order, no of book , no of invoices etc & cost pool which are accumulated all overhead cost involved in process of all particular activity of library services. ABC COSTING method is ideally suited for use of academic libraries to keep control on cost of various activity. & helpful for eliminated the unnecessary cost . & provide platform for taking various decisions.

Implementation of activity based costing in Academic library-:

To set up activity based costing is academic library in necessary for analysis each activity which is perform in each section of library. The following four steps are involved in ABC SYSTEAM of academic library 1) 2) 3) 4) Interviews with library staff Identification of activities & relevant cost drivers Analysis of library records & allocation of cost in cost pool Calculation of activity cost

1) Interviews with library staff-: The first steps involves interviewing library staff & identify about main activities performed in library.& role of each staff member play in this activities the most accurate information is achieved when library staff physically performed the task while describe them to interviewer.& least accurate information provide by superior in absence of staff member. & further interview depend on description matched with task. 2) Identification of activities & relevant cost drivers-: In this steps to identify all different activities like ordering, accessing, processing etc.& all relevant cost drivers like no of overdue books, no of enquires , no of projects , no of book orders, no of copies etc. 3) Analysis of library records & allocation of cost in cost pool-: In this step to analysis all details of library activity. & study about all cost pool like circular section, reference section, monograph section, serial acquisitions, cataloging section. 4) Calculation of activity cost-: In this step while calculated activity cost pool should established & according to cost pool cost driver are determine & to calculated total activity cost of library service.