use common resources differently, some sort of weighting is needed in the cost allocation process. The cost driver is a factor that creates or drives the cost of the activity. For example, the cost of the activity of bank tellers can be ascribed to each product by measuring how long each product's transactions (cost driver) take at the counter and then by measuring the number of each type of transaction. For the activity of running machinery, the driver is likely to be machine operating hours, looking at labor, maintenance, and power cost during the period of machinery activity. Application ABC has proven its applicability beyond academic discussion. ABC is applicable throughout company financing, costing and accounting: is a modeling process applicable for full scope as well as for partial views. helps to identify inefficient products, departments and activities. helps to allocate more resources on profitable products, departments and activities. helps to control the costs at any per-product-level level and on a departmental level. helps to find unnecessary costs that may be eliminated. helps fixing the price of a product or service with any desired analytical resolution. A report summarizes reasons for implementing ABC as mere unspecific and mainly for case study purposes (in alphabetical order): Better Management Budgeting, performance measurement Calculating costs more accurately Ensuring product /customer profitability Evaluating and justifying investments in new technologies Improving product quality via better product and process design Increasing competitiveness or coping with more competition Management Managing costs Providing behavioral incentives by creating cost consciousness among employees Responding to an increase in overheads Responding to increased pressure from regulators Supporting other management innovations such as TQM and JIT systems Beyond such selective application of the concept, ABC may be extended to accounting, hence proliferating a full scope of cost generation in departments or along product manufacturing. Such extension, however requires a degree of automatic data capture that prevents from cost increase in administering costs. Implementation According to Velmurugan, Activity-based costing must be implemented in the following ways: Identify and assess ABC needs - Determine viability of ABC method within an organization. Training requirements - Basic training for all employees and workshop sessions for senior managers. Define the project scope - Evaluate mission and objectives for the project. Identify activities and drivers - Determine what drives what activity. Create a cost and operational flow diagram – How resources and activities are related to products and