Traditional costing answers, "What did we spend?" Activity-Based Costing answers, "Why did we spend it, and who should pay for it?"
Enter —a method that assigns costs to products or services based on the actual activities and resources they consume. activity based cost definition
✅ – Stop subsidizing inefficient products. ✅ Identifies waste – See which activities add cost without value. ✅ Better pricing & strategy – Price based on real consumption, not rough averages. ✅ Process improvement – Target high-cost activities for automation or redesign. Traditional costing answers, "What did we spend
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