Not much is written about Activity Based Costing (ABC) these days. It was big in the 1980’s, but other things like the Balanced Scorecard seem to have taken the lime-light. My guess is that ABC was seen as a detailed oriented initiative that would consume vast corporate resources with no substantial payback and besides; the normal accounting systems would allow for various cost allocations – so why bother? ABC can be much more than a cost allocation methodology.

As a very quick reminder, A...


Continue reading ...