Bhimani, Horngren,
Datar and Rajan,
Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012
ABB
is helpful for ex ante and
ex post cost control. ABB reveals the costs of different activities so that managers can attempt to reduce consumption of the cost drivers before costs are committed or locked in. After
the incurrence of actual costs, ABB
can pinpoint activities where (1) the actual cost rate of the activity was higher than budgeted or (2) the usage of the cost driver was higher than budgeted.
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