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Home > QFINANCE Dictionary > Definition of ABC

Definition of

ABC

Accounting abbr

calculating business's cost from cost of activities activity based costing: a method of calculating the cost of a business by focusing on the actual cost of activities, thereby producing an estimate of the cost of individual products or services. Activity based costing may be linked to activity based management, which links with other techniques such as benchmarking, performance management, process management, and reengineering. ABC analysis focuses directly on cost drivers rather than overheads per se.

ABC - Related Articles

  • Understanding Activity-Based Costing

    Checklists

    Activity-based costing (ABC) is a means of analyzing costs according to particular activities performed by individuals, teams, divisions, or other components of a company. These activities can be analyzed on many levels, for example, looking at a process to determine the cost of the overall process, or breaking down a process into activities to determine more precisely how resources are consumed by each identified activity of that process

  • Activity-Based Costing

    Calculations

    Activity-based costing (ABC) attempts to create the big picture—crystal-clear, full, and accurate—by painting assorted little pictures.

  • Profitability Analysis Using Activity-Based Costing

    Best Practice

    Many firms—from manufacturing to medical and healthcare to banking and financial services to hospitality and not-for-profit organizations—have benefited from designing and implementing ABC allocation systems. Using ABC tools has helped these organizations to understand profitability more clearly
    By Priscilla Wisner

  • Leigh Skene

    Biographies

    economic consultant specializing in financial markets. He has been a director of Lombard Street Associates since 2004. In 2007 Skene wrote three key reports: “The ABC of 21st century risk,” “The sub-prime mortgage fiasco—The start of something big,” and “Credit and credibility,” which pointed out

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Definitions of ’ABC’ and meaning of ’ABC’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’ABC’ and other financial terms with our online QFINANCE Financial Dictionary.

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