Activity - Based Costing and Relevant Cost Analysis: An Example of Protective Force Services and Security Upgrades

摘要

National laboratories are being encouraged to become more cost effective but their accounting data often impedes identifying the cost of current operational activities. The practice of activity - based costing was developed in the private sector in response to managers' needs for more accurate product and service costs. While ABC is not likely to replace one's cost accounting sys - Tem, it has proven to be useful in strategic decision - making. This paper provides an overview of ABC, the steps to imple - Ment its use and an example within security operations.