1. Basics of ABC Costing

11. ABC Costing The application of ABC costing techniques is simple and
this presentation
will walk through an example.
The most complex part of
an ABC system is
establishing the system.

12. A Simple ABC Example

13. A Simple ABC Example

14. A Simple ABC Example

15. A Simple ABC Example

16. A Simple ABC Example

17. A Simple ABC Example

18. A Simple ABC Example

19. A Simple ABC Example

20. A Simple ABC Example

21. A Simple ABC Example

22. A Simple ABC Example

23. A Simple ABC Example

24. A Simple ABC Example

25. A Simple ABC Example

26. A Simple ABC Example

27. Management Reports
The most common management reports prepared with ABC data are product and customer profitability reports. These reports assist companies in allocating their resources to the most profitable opportunities
These reports also highlight the most profitable products and customers.

28. Customer A Margin Report One order for 27 cabinets

29. Customer B Margin Report Four orders; 100 cabinets sold in total

30. Product Margin Report Note no customer support included

31. Product Margin Report Customer support and organizational costs included