In a nutshell, activity-based costing/management seeks to measure the profitability levels for products or activities and then attempts to prioritize those based on importance to the business as a way of targeting efficiency.
We’ve recruited Professor Doug Clinton, PhD, CMA, CPA, from Northern Illinois University to explain management accounting concept in full detail, as well as walk you through some helpful examples, You can watch his great video lecture (on repeat, if you like) below.
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