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Overview of Activity-Based Costing

With activity-based costing, you can more accurately assign direct and allocate indirect costs to products than traditional product costing methods. This essay is a guide to set up activity-based costing in Oracle Cost Management and Oracle General Ledger. Your actual implementation may vary.

Suggestion: Before you implement activity-based costing, consult with your financial advisors or auditors. Implementing activity-based costing may require significant changes to your general ledger structure.

Additional Information: Peter BB. Turney, Common Cents: The ABC Performance Breakthrough (Cost Technology, 1991) James Brimson, Activity Accounting--An Activity-Based Cost Approach (Coopers & Lybrand, John Wiley & Sons, 1991)

See Also

What Is Activity-Based Costing?

When Is Activity-Based Costing Appropriate?

How Is Activity-Based Costing Used?

Activity-Based Cost Modeling in Oracle Applications

Activity-Based Management

Implementing Activity-Based Costing

Performing an Activity Analysis

Calculating Activity Costs in General Ledger

Computing Activity-Based Product Costs in Cost Management

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