Activity Based Costing in Financial Management & Decision Making

Financial Management & Decision
Making

Table of Content
Introduction
Explains for a business enterprise how it implements
Activity Based Costing.
Advantages and disadvantages of the business utilising
ABC costing.
How Activity Based Costing (ABC) is beneficial over
traditional costing techniques.
Conclusion
References

Introduction
Financial management refers to the business function which
is primarily concerned with planning, organizing, directing
and controlling the financial activities in a business enterprise
involving tasks such as procurement and utilization of the
funds of the business (Duran and Afonso, 2020).
Activity based costing also referred as ABC Costing involves
assigning the indirect costs and overheads of the business to
the products and services to which they are related.