Part of Speech

Noun

Phonetic Transcription

/əkˈtɪv.ɪ.ti beɪst ˈkɔːstɪŋ/

Meaning and Use

Activity-based costing (ABC) is a managerial accounting method that allocates costs to products and services based on the activities and resources that go into producing them. It helps businesses to better understand their cost structure and profitability by providing more precise cost allocations.

ABC is frequently used in the context of financial management and cost accounting, primarily in written form such as reports, articles, and textbooks. It is less commonly encountered in everyday conversation but may appear in discussions among professionals in finance and strategic planning.

Example Sentences

1. The company decided to implement activity-based costing to gain better insight into their production costs.

2. Компедия решила внедритьcosting, чтобы лучше понять свои производственные затраты.

3. By utilizing activity-based costing, the management was able to identify inefficient processes.

4. Используя costing, управление смогло выявить неэффективные процессы.

5. Activity-based costing provides a clearer picture of the costs associated with specific products.

6. costing предоставляет более четкое представление о затратах, связанных с конкретными продуктами.

Idiomatic Expressions

While "activity-based costing" itself is not commonly found in idiomatic expressions, it can be related to phrases used in financial contexts. Here are some idiomatic expressions related to financial management:

1. Cutting costs.
2. Reducing expenses is often necessary for improving profitability.

3. Сокращение затрат часто необходимо для повышения рентабельности.

4. Bottom line.

5. Understanding your bottom line is essential for effective decision-making in any business.

6. Понимание вашей чистой прибыли необходимо для эффективного принятия решений в любом бизнесе.

7. In the black.

8. A business that is "in the black" is profitable, which is the goal of using methods like activity-based costing.

9. Бизнес, который «в черном», является прибыльным, что является целью использования таких методов, как costing.

10. A penny saved is a penny earned.

11. Implementing activity-based costing is a way to ensure that every penny saved contributes to overall profitability.

12. Внедрение costing — это способ обеспечить, чтобы каждая сэкономленная копейка способствовала общей прибыльности.

13. Throw money at a problem.

14. Simply throwing money at a problem without proper analysis, like using activity-based costing, won't yield the best results.
15. Просто бросая деньги на проблему без надлежащего анализа, подобного costing, вы не получите лучших результатов.

Etymology

The term "activity-based costing" consists of the word "activity," which derives from the Latin "activitas," meaning "the quality of being active," and "costing," which is derived from the word "cost," coming from the Old French "coste" and Latin "costa," meaning "side or rib," indicating a charge or expense incurred in the process of business.

Synonyms and Antonyms

Synonyms

• Activity-based management
• Cost management system
• Activity costing

Antonyms

• Traditional costing
• Absorption costing

This structured overview provides a comprehensive understanding of "activity-based costing," showcasing its relevance in financial management and the nuances of its usage in the English language.