Activity-based costing has been adopted by a growing number of organisations to enable them to reduce their reliance on traditional cost-accounting systems.

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Activity-based costing (ABC) is a cost-accounting method that identifies activities in an organization and assigns the cost of each activity to products and services according to the actual consumption by each. It enables organizations to gain a better understanding of the cost of their products and services, which can lead to more accurate pricing and cost control. As a result, many organizations have adopted ABC to reduce their reliance on traditional cost-accounting systems.

Activity-Based Costing Has Been Adopted by a Growing Number of Organisations