Activity-Based Costing (ABC)

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A method used to determine the entire cost of all activities needed to create a product. Investors who believe that many commodities are under-priced often prefer ABC. Currently, prices for goods do not always account for the external costs incurred on the natural environment to create those goods.


Activity-Based Costing (ABC): Method and Advantages Defined with Example (Investopedia)
Activity-based costing (ABC) (CGMA)