Activity Based Costing in SAP | SAP Blogs https://blogs.sap.

com/2014/08/18/activity-based-costing-in-sap/

Activity Based Costing in SAP

August 18, 2014 | 8,943 Views |

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Introduction

Activity Based Costing is a method of costing, where the cost of products,

processes, customers are determined through Activities performed in the
production/ support unit. It is more logical method of determining
overhead cost for the product than the historically method of using
machine hours or man hours to distribute the cost. In activity based
costing process, first the activities are identified, which attract cost and
then the total cost are distributed to product on the basis of number of
activities consumed in the manufacturing and production processes. The

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Activity Based Costing in SAP | SAP Blogs https://blogs.sap.com/2014/08/18/activity-based-costing-in-sap/

2 of 2 06/12/2018, 12:37