Activity - based costing (ABC)

Activity-based costing (ABC) A system for making business

decisions based on cost information of fundamental
business activities as tasks related to product design,
development, quality, manufacturing, distribution,
customer acquisition, service and support.

ABC is sometimes considered a form of business process

re-engineering as it insists on surfacing a manageable
number of cost drivers that can be used to trace variable
business costs to customer, products and processes