Role for Activity-BasedCost (ABC)Processes

Activity-based costing(or ABC, as it is regularly called), championed by Professor John Shank of the Tuck School of industry, is now organism introduced in many developed and service organizations to overcome the incapability of conventional cost processes to precisely assign overhead costs. According to Professor Shank, organization has spent years and millions of dollars trying to enlarge accounting systems that nevertheless have incorrectly dispersed costs, particularly indirect and fixed costs. With many manufacturing organization now having overhead costs 5 or 10 times as great as their direct manual labor costs, managerial accounting processes that allocate overhead based on straight labor may lead to large distortions in the costs assign to an organization's goods and clientele.

ABC流程被认为是为了避免任意分配和通过将组织财产的成本传输到资源所执行的活动来避免成本扭曲。然后，将活动成本分配给正在从事的服务，产品和客户的服务，产品和客户。因此，采购的支出被分配给购买的商品，策划产品的成本直接分配给最近设计的食品，并将补充客户的费用分配给了个性客户。