Activity-Based Costing

Make better decisions using your financial data. Learn how to design and implement activity-based costing to understand overhead costs and assign costs appropriately.

Introduction

• Why use activity-based costing (ABC)?
• How can ABC help my business?
• What is ABC?

1. ABC Foundations

• Understanding the ABC process
• Understanding cost pools
• Define the cost objects
• Define activity drivers

2. Sourcing Data

• Defining data needs
• Reviewing source data

3. Building the ABC Model

• ABC modeling tools
• Structuring your model
• Building calculations
• Including direct costs
• Adding quality assurance

4. Presenting the Results

• Preparing ABC reports
• Analyzing the outputs
• Advising stakeholders on outcomes
• A sustainable ABC framework

Conclusion

• Next Steps