Traditional costing answers, "What did we spend?" Activity-Based Costing answers, "Why did we spend it, and who should pay for it?"
ABC is powerful but detailed. It works best when the cost of errors from traditional costing is high—think complex manufacturing, diverse service lines, or multi-channel retail.
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Here’s a professional, clear post about , suitable for LinkedIn, a company newsletter, or a finance blog. Post Title: Understanding Activity-Based Costing (ABC): Beyond Traditional Numbers