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Activity-Based Costing
A costing methodology that assigns costs to products and services based on the resources they consume, aiming for more accurate product costing and profitability analysis.
Nonvalue-Adding Activities
Tasks or processes that consume resources but do not add value or contribute to the customer's satisfaction or product's final worth.
Cost Driver Rate
A measure used in cost accounting to assign the costs of an activity to products or services, based on the extent of the activity they require.
Cost Analysis
The review and evaluation of the costs associated with a project, process, or activity, aimed at identifying opportunities for cost reduction and efficiency improvement.
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