Finance AI Skill

Activity Based Costing

Implement Activity-Based Costing (ABC) to accurately allocate overhead and indirect costs to products, services, customers, or channels based on the actual activities that consume resources. Use when users want to move beyond traditional volume-based allocation, understand true product profitability, identify cost drivers, optimize resource consumption, set data-driven prices, or eliminate unprofitable products/customers. Triggers on phrases like "activity based costing", "ABC costing", "cost driver analysis", "overhead allocation", "true product cost", "resource consumption", "profitability by product", "cost pool", "cost allocation base", "ABC implementation", "indirect cost allocation", or related ABC queries.