Activity-based costing has been around since the
mid-nineteen eighties. Given its longevity, it’s
worthwhile to answer:
- How has ABC evolved over its life cycle?
- What lessons have been learned from the evolution of
ABC?
- What can ABC do today that it could not do 20 years
ago?
This article answers these questions by examining the
evolution of ABC in the context of a product life cycle.
It summarizes the history of ABC according to the phases
of its life cycle, highlights its expanding
functionality over time, and details the lessons learned
from two decades of use. It concludes with a description
of the current state of ABC as a key input and value
adder to performance management systems. pdf
