ABkustannuslaskenta

ABkustannuslaskenta, which translates to Activity-Based Costing (ABC) in English, is a method of cost accounting that identifies the cost of specific business activities and assigns those costs to products or services based on their actual consumption of those activities. Unlike traditional costing methods that often allocate overhead costs using a single, broad driver like direct labor hours, ABC aims for a more precise allocation by recognizing that different products or services consume overhead resources differently.

The core principle of ABkustannuslaskenta involves a two-stage process. First, indirect costs, or overhead, are traced to specific activities within an organization. These activities can include things like setting up machines, processing invoices, or providing customer support. Second, these activity costs are then allocated to cost objects, such as products or services, based on the extent to which each cost object consumes the identified activities. This consumption is measured using cost drivers, which are factors that cause an activity to occur.

The benefits of implementing ABkustannuslaskenta include a more accurate understanding of product and service profitability, improved decision-making regarding pricing and product mix, and better identification of areas for cost reduction and process improvement. By understanding the true cost drivers, businesses can focus their efforts on activities that add the most value and eliminate or streamline those that do not. However, implementing ABC can be complex and resource-intensive, requiring detailed analysis of business processes and significant data collection.