1
ABC splits the total cost into minute details. The common costs are converted into variable cost using suitable parameters so that they can be controlled.
2
The common cost are distributed among the products or services based on actual resource consumption rather than allocation of the same..
3
ABC needs lot of data which nowadays can be made available very easily due to software technology.
4
In ABC we can also work out the impact on cost because of ‘Not doing’. What is means is it works out the cost of lost opportunities.
5
ISA ERP has special expertise in implementation of Activity Based Costing.
