Construction accounting – Learn the ABCs of activity-based costing
Abstract: A project may seem to be running right on budget, but how can a contractor know for sure whether it’s boosting profits or hurting the bottom line? One way to address such uncertainty is through an accounting process called activity-based costing (ABC). This article explains how ABC works and why it can both provide a clearer picture of job progress and help improve future estimates. A sidebar provides the four steps to create an ABC code.