Activity-Based CostingAssigning overhead by what actually drives it.Accounting & FinanceBuilding an ABC model.1Identify activitiesThe things that consume resources — setups, inspections, orders.2Pool the costsGroup overhead by the activity that causes it.3Choose cost driversA measure that moves with the activity, such as number of setups.4Calculate driver ratesCost pool divided by total driver volume.5Assign to productsDriver rate times each product's driver usage.ABC typically shows low-volume specials cost far more thanvolume-based costing suggested — and high-volume lines less.Activity-Based Costinglearnposters.com
Activity-Based Costing — printable business wall chart from LearnPosters. Free vector PDF, US Letter and A4.

Activity-Based Costing, step by step

Building an ABC model.

  1. Identify activitiesThe things that consume resources — setups, inspections, orders.
  2. Pool the costsGroup overhead by the activity that causes it.
  3. Choose cost driversA measure that moves with the activity, such as number of setups.
  4. Calculate driver ratesCost pool divided by total driver volume.
  5. Assign to productsDriver rate times each product's driver usage.

ABC typically shows low-volume specials cost far more than volume-based costing suggested — and high-volume lines less.

Questions about the Activity-Based Costing poster

What’s on the Activity-Based Costing poster?
5 numbered steps. Building an ABC model. Identify activities — The things that consume resources — setups, inspections, orders.; Pool the costs — Group overhead by the activity that causes it.; Choose cost drivers — A measure that moves with the activity, such as number of setups.; Calculate driver rates — Cost pool divided by total driver volume.; Assign to products — Driver rate times each product's driver usage.. ABC typically shows low-volume specials cost far more than volume-based costing suggested — and high-volume lines less.
Who is the Activity-Based Costing poster for?
Activity-Based Costing belongs to the Accounting & Finance section rather than to a school year, because business is not something one grade owns. Anyone learning management accounting can pin it up — a beginner, a student mid-course, or someone revising years later.
When should you use the Activity-Based Costing poster?
Traditional costing spreads overhead by volume. ABC traces it to activities. A wall chart earns its place by being glanceable from where the work is happening, so Activity-Based Costing belongs on the wall where that business work actually happens, within glancing distance, rather than filed away.
What other posters go with Activity-Based Costing?
Absorption vs Marginal Costing, Budgeting and Investment Appraisal sit alongside Activity-Based Costing in the Accounting & Finance section. Printed together they make a wall rather than a single sheet, which is how a reference set actually gets used.Absorption vs Marginal CostingBudgetingInvestment Appraisal
Is the Activity-Based Costing poster free to download and print?
Yes. Activity-Based Costing downloads as a free PDF with no account, no email and no watermark, like everything else in the Accounting & Finance section. Print as many copies as you like for a home, a classroom, a library or a tutoring group; reselling the file is the only thing the licence rules out.Read the licence
What size does the Activity-Based Costing poster print at?
Activity-Based Costing is a vector PDF laid out for US Letter, and prints on A4 with Fit to page — the same file, no separate download. Because every mark on it is drawn rather than photographed, it stays sharp enlarged to A3, A2 or A1 at a copy shop. Colour carries emphasis only, so a greyscale print of Activity-Based Costing loses nothing.Printing guide

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