what is the activity based costing method 
activity based costing abc is a method of assigning overhead and indirect costs such as salaries and utilities to products and services doing this helps to get a better grasp on costs allowing companies to form a more appropriate pricing strategy and churn out higher profits the bottom lineexamining activity cost drivers helps companies to reduce unnecessary expenses and get to grips with how much an order really costs the importance of accessing this knowledge shouldn t be understated the ultimate goal is to maximize profits and a key way to accomplish this is by being aware of all expenses and keeping them in check 