Descriptions and Definitions of Quality Terms, Tools and Techniques

 

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Activity Based Costing (ABC)

This is an approach to allocating expenses within a workplace, based on actual use of resources. This may be compared with the more normal approach of lumping together all unknown costs into an 'overhead' and allocating a proportion to each department. 

When it is used to manage the business, the overall approach is called 'Activity Based Management'.

See also:

Activity Based Management, Process Management

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