ABC cost component
[/ˌeɪ biː ˈsiː kɔst kəmˈpoʊnənt/]
nounpl: ABC cost components
componente de custo ABC
1. An individual cost element or factor identified and allocated in Activity-Based Costing (ABC) methodology, representing a specific resource consumption or activity that contributes to the total cost of a product or service
The ABC cost component for machine setup time was calculated separately from direct labor costs.
O componente de custo ABC para o tempo de configuração da máquina foi calculado separadamente dos custos de mão de obra direta.
2. In management accounting, a discrete cost driver or cost pool element that is tracked and assigned to cost objects based on their actual consumption of activities
Each ABC cost component must be clearly identified and linked to its corresponding cost driver.
Cada componente de custo ABC deve ser claramente identificado e vinculado ao seu correspondente direcionador de custo.
ABC (Activity-Based Costing) is a management accounting methodology that gained prominence in the 1980s-1990s and is widely taught in business schools and used by multinational corporations. In Brazil, particularly in São Paulo's financial district, ABC cost analysis is standard practice for companies seeking more accurate cost allocation. The term reflects a shift from traditional volume-based costing to activity-based analysis, representing modern cost management practices in both Brazilian and international business environments.
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