{"id":249902,"date":"2023-02-27T15:12:51","date_gmt":"2023-02-27T15:12:51","guid":{"rendered":"https:\/\/imarticus.org\/?p=249902"},"modified":"2024-04-02T07:37:05","modified_gmt":"2024-04-02T07:37:05","slug":"what-is-activity-based-costing-and-management","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/what-is-activity-based-costing-and-management\/","title":{"rendered":"What is Activity-Based Costing and Management?"},"content":{"rendered":"

According to the Chartered Institute of Management Accountants (CIMA) terminology, Activity Based Costing and Management, often abbreviated as ABC, is a technique for activity costing and monitoring. This method entails tracing resource usage and costing final outcomes. Managers can use this strategy to have a better understanding of product and customer net profitability. This improves the business's ability to make value-based and thus more effective decisions.<\/span><\/p>\n

Mastering the Activity-Based Costing and Management system can be challenging but can be conquered with the help of an <\/span>accounting and finance certification <\/span>like the <\/span>CMA course<\/a><\/strong>. Keep reading to know more about the ABC technique and how enrolling in the <\/span>CMA program<\/strong> can be beneficial for mastering this technique.<\/span><\/p>\n

What is Activity-Based Costing and Management?<\/strong><\/h2>\n

ABC is an accounting system that allocates expenses to activities rather than items or services. This allows for a more accurate allocation of resources and overhead costs to the products and services that consume them.\u00a0<\/span><\/p>\n

How Does Activity-Based Costing and Management Work?<\/strong><\/h2>\n

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If you want to master this method, take up an <\/span>accounting and finance certification like the <\/span>CMA course<\/span>. <\/span>Here is an overview of how an Activity-Based Costing and Management system works:<\/span><\/p>\n