ABC
1. Cost of individual activities is measured after the
actual performance. Hence, ABC is reactive in nature.
2. Objective is to improve the performance next time
by learning from last performance
3. ABC is analytic i.e. it analyses present activities for a
particular period.
4. Deals with cost related to individual activities
5. ABC is independent in nature
6. ABC is micro concept
MBC
•Cost of each mission is estimated well in advance.
Hence, MBC is proactive in nature.
2. Objective is to improve current performance by
having proper planning in advance.
3. MBC is a planning tool as it formulates plans for
budgetary control of each mission.
4. Deals with cost related to whole mission
5. MBC is dependent in nature