##  [Activity-Based Costing](/index.php/activity-based-costing) 

  ##  [Activity-Based Costing](https://econbiz.quantumdictionary.io/activity-based-costing-0) 

  

 [![Economics & Business Dictionary](/sites/default/files/styles/large/public/2026-01/Economics%20%26%20Business.png.webp?itok=vhJhN5nM)](/index.php/topic-specific-dictionaries/social-sciences/economics-business)

- Social Sciences -

**Economics & Business Dictionary**

 







 

 

 

 



 

 

 

 

Definition

An accounting concept defining how financial activity is recorded, classified, and summarized into reports. It specifies recognition, measurement, and control practices that support reliable reporting and decision use. It does not prevent misstatement without effective controls, review procedures, and consistent application of accounting policies.



 

 

 

 

 





 

 



 ##  [Activity-Based Costing](https://finance.quantumdictionary.io/activity-based-costing-1) 

  

 [![Finance & Accounting Dictionary](/sites/default/files/styles/large/public/2026-01/Finance%20%26%20Accounting.png.webp?itok=6gCSbld3)](/index.php/topic-specific-dictionaries/social-sciences/finance-accounting)

- Social Sciences -

**Finance & Accounting Dictionary**

 







 

 

 

 



 

 

 

 

Definition

A cost and performance management concept defining methods used to measure costs, plan spending, and analyze deviations from expectations. It governs cost attribution, budgeting, forecasting, and variance drivers used to improve profitability and operational decisions. It does not ensure savings without accurate cost drivers, timely data, and follow-through on corrective actions.



 

 

 

 

 





 

 



 ##  [Activity-Based Costing](https://engineering.quantumdictionary.io/activity-based-costing-2) 

  

 [![Engineering & Applied Technologies Dictionary](/sites/default/files/styles/large/public/2026-01/Engineering%20%26%20Applied%20Technologies.png.webp?itok=_IKO7_-n)](/index.php/topic-specific-dictionaries/engineering-applied-technologies)



**Engineering & Applied Technologies Dictionary**

 







 

 

 

 



 

 

 

 

Definition

A managerial cost-accounting technique that assigns indirect and overhead costs to products, services or customers by tracing those costs to the specific activities that consume resources and then using activity drivers to allocate activity costs to cost objects.

 

 

 

 

 





 

 



 ##  [Activity-Based Costing](https://social.quantumdictionary.io/activity-based-costing-3) 

  

 [![Social Sciences Dictionary](/sites/default/files/styles/large/public/2026-01/Social%20Sciences.png.webp?itok=FFG6NW1n)](/index.php/topic-specific-dictionaries/social-sciences)



**Social Sciences Dictionary**

 







 

 

 

 



 

 

 

 

Definition

A managerial costing methodology that identifies discrete activities performed within an organization, aggregates the costs of resources consumed by each activity into activity cost pools, selects measurable activity cost drivers, computes activity rates (activity cost pool ÷ driver quantity), and assigns overhead and indirect costs to products, services, or other cost objects in proportion to the