{"id":999979376,"date":"2025-12-09T10:05:12","date_gmt":"2025-12-09T03:05:12","guid":{"rendered":"https:\/\/bizzi.vn\/?p=999979376"},"modified":"2026-06-09T13:48:42","modified_gmt":"2026-06-09T06:48:42","slug":"abc-method-in-managerial-accounting","status":"publish","type":"post","link":"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/","title":{"rendered":"What is the ABC method in management accounting? How to do it, examples and practical applications for businesses"},"content":{"rendered":"<p><span style=\"font-weight: 400;\"><em><strong>Activity-Based Costing (ABC)<\/strong> <\/em>is a method of calculating costs by activity, putting costs \u201cin the right place\u201d. The ABC method in management accounting was born to answer the question: \u201cHow many resources are we spending on each activity, each product, each customer?\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This article will clarify the nature of ABC method in management accounting through conceptual analysis, process introduction and practical examples for visualization.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Vi_sao_doanh_nghiep_can_quan_tam_den_phuong_phap_ABC_trong_ke_toan_quan_tri_ngay_bay_gio\" >Why do businesses need to care about the ABC method in management accounting right now?\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Boi_canh_canh_tranh_va_ap_luc_len_chi_phi\" >Competitive landscape and cost pressures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#%E2%80%9CCon_dau%E2%80%9D_ma_doanh_nghiep_dang_gap_phai\" >The &quot;pain&quot; that businesses are facing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Vai_tro_cua_ABC_trong_giai_quyet_bai_toan_chi_phi\" >The role of ABC in solving cost problems<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Phuong_phap_Activity-Based_Costing_ABC_la_gi\" >What is Activity-Based Costing (ABC)?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#ABC_la_gi_trong_ke_toan_quan_tri\" >What is ABC in management accounting?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Ban_chat_va_luan_diem_cot_loi_cua_phuong_phap_ABC_trong_ke_toan_quan_tri\" >The nature and core arguments of the ABC method in management accounting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Lich_su_va_boi_canh_ra_doi_cua_ABC\" >History and background of ABC<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Cau_truc_thanh_phan_cot_loi_cua_phuong_phap_ABC_trong_ke_toan_quan_tri\" >Core Structure &amp; Components of ABC Method in Management Accounting\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Cac_khai_niem_bat_buoc_phai_nam\" >Must-know concepts<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#1_Activity_Hoat_dong\" >1. Activity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#2_Activity_Cost_Pool_Be_chi_phi_hoat_dong\" >2. Activity Cost Pool<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#3_Cost_Driver_Yeu_to_gay_chi_phi\" >3. Cost Driver<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#4_Cost_Object_Doi_tuong_chiu_chi_phi\" >4. Cost Object<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#5_Resource_Drivers_vs_Activity_Drivers\" >5. Resource Drivers vs Activity Drivers<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Phan_loai_hoat_dong_theo_cap_do_chi_phi_cost_hierarchy\" >Cost hierarchy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Hoat_dong_tao_gia_tri_voi_khong_tao_gia_tri\" >Value-creating vs. non-value-creating activities<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Quy_trinh_trien_khai_phuong_phap_ABC_Activity-Based_Costing\" >ABC (Activity-Based Costing) method implementation process<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Buoc_1_%E2%80%93_Xac_dinh_pham_vi_va_muc_tieu\" >Step 1 \u2013 Define Scope and Objectives<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Buoc_2_%E2%80%93_Xac_dinh_va_liet_ke_cac_hoat_dong\" >Step 2 \u2013 Identify and list activities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Buoc_3_%E2%80%93_Gom_nhom_hoat_dong_thanh_Cost_Pools\" >Step 3 \u2013 Group activities into Cost Pools<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Buoc_4_%E2%80%93_Tap_hop_chi_phi_cho_tung_Cost_Pool\" >Step 4 \u2013 Collect costs for each Cost Pool<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Buoc_5_%E2%80%93_Xac_dinh_Cost_Drivers_cho_tung_hoat_dong\" >Step 5 \u2013 Identify Cost Drivers for Each Activity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Buoc_6_%E2%80%93_Tinh_ty_le_chi_phi_hoat_dong_Activity_Rate\" >Step 6 \u2013 Calculate the Activity Rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Buoc_7_%E2%80%93_Phan_bo_chi_phi_xuong_san_pham_dich_vu_khach_hang\" >Step 7 \u2013 Allocate costs down to product\/service\/customer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Vi_du_minh_hoa\" >Illustrative example<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Ung_dung_phuong_phap_ABC_trong_quan_tri_doanh_nghiep\" >Applying ABC method in business administration<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#1_Tinh_dung_gia_thanh_phan_tich_loi_nhuan_da_chieu\" >1. Calculate the correct cost and analyze multidimensional profits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#2_Loai_bo_chi_phi_khong_tao_gia_tri_toi_uu_quy_trinh\" >2. Eliminate non-value-added costs &amp; optimize processes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#3_Ho_tro_quyet_dinh_chien_luoc\" >3. Support strategic decisions<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Uu_diem_nhuoc_diem_nhung_hieu_lam_thuong_gap_ve_phuong_phap_ABC_trong_ke_toan_quan_tri\" >Advantages, disadvantages &amp; common misconceptions about ABC method in management accounting<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Uu_diem_noi_bat_cua_ABC\" >Outstanding advantages of ABC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Nhuoc_diem_va_rao_can_trien_khai\" >Disadvantages and barriers to implementation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Nhung_hieu_lam_pho_bien_ve_ABC\" >Common Misconceptions About ABC<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Cong_nghe_phan_mem_ho_tro_trien_khai_phuong_phap_ABC_trong_ke_toan_quan_tri\" >Technology &amp; software supporting the implementation of the ABC method in management accounting\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Vai_tro_cua_ERP_EPM_va_phan_mem_ABC\" >The role of ERP, EPM and ABC software<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Ket_noi_ABC_voi_du_lieu_chi_phi_tu_Bizzi\" >Connect ABC with cost data from Bizzi<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Bizzi_IPA_3-way_matching\" >Bizzi IPA + 3-way matching<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Bizzi_Expense_Travel\" >Bizzi Expense \/ Travel<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-40\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Giam_tai_buoc_tap_hop_chi_phi_cho_cost-pool\" >Offload the cost aggregation step to the cost-pool<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-41\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#AI_va_tu_dong_hoa_trong_ABC_nang_cao\" >AI and Automation in Advanced ABC<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-42\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#1_AI_%E2%80%93_Goi_y_cost_driver_toi_uu\" >1. AI \u2013 Suggesting optimal cost driver<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-43\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#2_Machine_Learning_%E2%80%93_Phat_hien_bat_thuong\" >2. Machine Learning \u2013 Anomaly Detection<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-44\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#3_RPA_Robotic_Process_Automation_%E2%80%93_Tu_dong_cap_nhat_mo_hinh\" >3. RPA (Robotic Process Automation) \u2013 Automatically update models<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-45\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Nganh_nghe_nao_nen_ap_dung_phuong_phap_ABC_trong_ke_toan_quan_tri\" >Which industries should apply the ABC method in management accounting?\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-46\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#1_San_xuat_Logistics\" >1. Production &amp; Logistics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-47\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#2_Ngan_hang_bao_hiem_dich_vu_tai_chinh\" >2. Banking, insurance &amp; financial services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-48\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#3_Y_te_benh_vien_giao_duc\" >3. Healthcare, hospitals &amp; education<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-49\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#4_Cong_nghe_SaaS_Thuong_mai_dien_tu\" >4. Technology, SaaS &amp; E-commerce<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-50\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Giai_dap_cac_cau_hoi_thuong_gap_ve_phuong_phap_ABC_trong_ke_toan_quan_tri\" >Answers to frequently asked questions about the ABC method in management accounting<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-51\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#1_ABC_dung_de_lam_gi_trong_ke_toan_quan_tri_va_khac_gi_phuong_phap_truyen_thong\" >1. What is ABC used for in management accounting and how is it different from the traditional method?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-52\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#2_Cost_driver_la_gi_va_chon_driver_the_nao_de_tranh_lech_chi_phi\" >2. What is a cost driver and how to choose a driver to avoid cost deviation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-53\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#3_ABC_co_the_thay_the_hoan_toan_phuong_phap_truyen_thong_khong\" >3. Can ABC completely replace the traditional method?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-54\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#4_Time-Driven_ABC_TDABC_la_gi_va_khac_gi_ABC_co_dien\" >4. What is Time-Driven ABC (TDABC) and how is it different from classical ABC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-55\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#5_Doanh_nghiep_nho_co_nen_ap_dung_ABC_khong\" >5. Should small businesses apply ABC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-56\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#6_ABC_co_the_ket_hop_voi_ERP_EPM_Bizzi_nhu_the_nao\" >6. How can ABC be combined with ERP \/ EPM \/ Bizzi?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-57\" href=\"https:\/\/bizzi.vn\/en\/abc-method-in-managerial-accounting\/#Ket_luan\" >Conclude<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Vi_sao_doanh_nghiep_can_quan_tam_den_phuong_phap_ABC_trong_ke_toan_quan_tri_ngay_bay_gio\"><\/span><b>Why do businesses need to care about the ABC method in management accounting right now?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Businesses need to pay attention to the ABC method in management accounting. <\/span><span style=\"font-weight: 400;\">because it helps to distribute <a href=\"https:\/\/bizzi.vn\/cac-loai-chi-phi-doanh-nghiep-phan-loai-chi-tiet-va-cach-quan-ly-hieu-qua\/\">types of business expenses<\/a> more accurately, especially indirect costs, thereby providing reliable information for strategic decision making.<\/span><span style=\"font-weight: 400;\">This also helps businesses better understand their cost structure, identify value-creating activities and find ways to optimize to enhance competitive advantage in a volatile market.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Boi_canh_canh_tranh_va_ap_luc_len_chi_phi\"><\/span><strong>Competitive landscape and cost pressures<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Businesses now have to compete on price and improve the quality of their products and services. The operating model is increasingly complex: multi-product, multi-channel, multi-market. In particular, indirect costs (management, IT, marketing, logistics, customer care, etc.) are taking up an increasingly large proportion of total costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When still using traditional allocation methods (based on labor hours or output), costs are easily distorted, making it difficult for businesses to accurately determine which products are profitable and which are negative capital.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"%E2%80%9CCon_dau%E2%80%9D_ma_doanh_nghiep_dang_gap_phai\"><\/span><strong>The &quot;pain&quot; that businesses are facing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Management is unsure which products, services, or segments are actually profitable.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Always in a state of &quot;the more you sell, the more you lack money&quot; because indirect costs increase but you don&#039;t know where they come from.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The finance and accounting department wanted a more realistic costing method, but was concerned that ABC was complicated and difficult to implement.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Vai_tro_cua_ABC_trong_giai_quyet_bai_toan_chi_phi\"><\/span><strong>The role of ABC in solving cost problems<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The Activity-Based Costing (ABC) method helps calculate costs based on each actual activity, bringing costs <\/span><b>back to the right place<\/b><span style=\"font-weight: 400;\">Instead of allocating overhead costs according to a single criterion, ABC analyzes costs according to each value-creating activity.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">In short, ABC was born to clearly answer: \u201cHow many resources are we spending on each activity, each product, each customer?\u201d<\/span><\/i><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Phuong_phap_Activity-Based_Costing_ABC_la_gi\"><\/span><b>What is Activity-Based Costing (ABC)?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The ABC method provides detailed information on how costs are generated by specific activities, thereby helping businesses accurately price, optimally manage costs and correctly assess the profitability of each product and service.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"ABC_la_gi_trong_ke_toan_quan_tri\"><\/span><b>What is ABC in management accounting?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In ABC in management accounting <\/span><b>(Activity-Based Costing)<\/b><span style=\"font-weight: 400;\"> is a costing method based on the principle: <\/span><b>Activities consume resources \u2013 and products (or customers) consume activities.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Accordingly, ABC identifies and groups activities into <\/span><b>cost pool<\/b><span style=\"font-weight: 400;\"> (<\/span><i><span style=\"font-weight: 400;\">Activity cost pools<\/span><\/i><span style=\"font-weight: 400;\">), then use <\/span><b>cost factors<\/b><span style=\"font-weight: 400;\"> (<\/span><i><span style=\"font-weight: 400;\">cost drivers<\/span><\/i><span style=\"font-weight: 400;\">) to allocate costs from activities down to individual products, services, customers, or sales channels more accurately.<\/span><\/p>\n<figure id=\"attachment_999979380\" aria-describedby=\"caption-attachment-999979380\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-999979380\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri.jpg\" alt=\"abc-method-in-management-accounting 3\" width=\"1200\" height=\"802\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri.jpg 1500w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri-300x201.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri-1024x685.jpg 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri-768x514.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri-18x12.jpg 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999979380\" class=\"wp-caption-text\">The Activity-Based Costing (ABC) method helps calculate costs based on each actual activity, bringing costs back to the right place where they arise.<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Ban_chat_va_luan_diem_cot_loi_cua_phuong_phap_ABC_trong_ke_toan_quan_tri\"><\/span><b>The nature and core arguments of the ABC method in management accounting<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Costs not directly attributable to the product<span style=\"font-weight: 400;\">, which arise when a business carries out its activities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Want to measure the right cost<span style=\"font-weight: 400;\">, must measure the activities and activity consumption levels of each cost object.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ABC shifts perspective from <\/span>\u201cdepartmental costs\u201d<span style=\"font-weight: 400;\"> luxurious <\/span>\u201cactivity-based and value-based costs\u201d<span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Lich_su_va_boi_canh_ra_doi_cua_ABC\"><\/span><b>History and background of ABC<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The ABC method in management accounting began to be mentioned in the late 1980s by <\/span><b>Johnson &amp; Kaplan<\/b><span style=\"font-weight: 400;\">, and was quickly widely applied in manufacturing enterprises. ABC appeared in the context of a sharp increase in the proportion of indirect costs, causing traditional allocation methods to no longer accurately reflect real costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nowadays, ABC is not only used in manufacturing but also strongly applied in:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Services &amp; logistics<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Banking &amp; Healthcare<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">SaaS &amp; software<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Retail &amp; e-commerce<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Cau_truc_thanh_phan_cot_loi_cua_phuong_phap_ABC_trong_ke_toan_quan_tri\"><\/span><b>Core Structure &amp; Components of ABC Method in Management Accounting\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The core components of ABC include identifying and analyzing activities, determining \u201ccost drivers,\u201d collecting costs for each activity, and finally allocating costs to products based on their activity usage.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cac_khai_niem_bat_buoc_phai_nam\"><\/span><b>Must-know concepts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">ABC method (Activity-Based Costing) <\/span><span style=\"font-weight: 400;\">is a modern accounting model that helps allocate indirect costs (overhead costs) accurately. By linking them to the actual activities that generate the costs, the ABC method provides more detailed information for strategic decision making and effective management of business operations.<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The key concepts in the ABC method are listed below.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"1_Activity_Hoat_dong\"><\/span><b>1. Activity<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Is a group of related jobs that consume resources to create a product, service or added value for customers.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>For example:<\/b><span style=\"font-weight: 400;\"> receive orders, set up machines, check quality, pack, deliver, handle complaints.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"2_Activity_Cost_Pool_Be_chi_phi_hoat_dong\"><\/span><b>2. Activity Cost Pool<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Is where all costs incurred for a particular type of activity are collected.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>For example:<\/b><span style=\"font-weight: 400;\"> \u201cQuality control\u201d costs include QC staff salaries, testing materials, and measuring equipment depreciation.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"3_Cost_Driver_Yeu_to_gay_chi_phi\"><\/span><b>3. Cost Driver<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Is a measure of the level of activity used by the cost object.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>For example:<\/b><span style=\"font-weight: 400;\"> Number of machine setups, number of orders, number of machine running hours, number of customer support tickets.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"4_Cost_Object_Doi_tuong_chiu_chi_phi\"><\/span><b>4. Cost Object<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Is the product, service, customer, sales channel or contract that the business wants to calculate the exact cost.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"5_Resource_Drivers_vs_Activity_Drivers\"><\/span><b>5. Resource Drivers vs Activity Drivers<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Choosing the right driver helps to correctly reflect the cause-and-effect relationship between costs and cost-bearing objects.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Resource driver:<\/b><span style=\"font-weight: 400;\"> used to allocate costs from resources (labor, electricity, depreciation, etc.) to activities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Activity driver:<\/b><span style=\"font-weight: 400;\"> used to allocate costs from activities to products, services, or customers.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Phan_loai_hoat_dong_theo_cap_do_chi_phi_cost_hierarchy\"><\/span><b>Cost hierarchy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>Activity level<\/b><\/td>\n<td><b>Characteristic<\/b><\/td>\n<td><b>For example<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Unit-level<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Generated by each product unit<\/span><\/td>\n<td><span style=\"font-weight: 400;\">machine hours per product<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Batch-level<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Batch generation<\/span><\/td>\n<td><span style=\"font-weight: 400;\">machine setup cost per batch<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Product sustaining<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Product maintenance and development<\/span><\/td>\n<td><span style=\"font-weight: 400;\">product research, own marketing<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Facility-level<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Maintain infrastructure<\/span><\/td>\n<td><span style=\"font-weight: 400;\">factory costs, security, general management<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Correctly understanding the hierarchy of activities helps avoid &quot;cost leveling&quot; according to product quantity, limiting price distortion.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Hoat_dong_tao_gia_tri_voi_khong_tao_gia_tri\"><\/span><b>Value-creating vs. non-value-creating activities<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Value-added activities:<\/b><span style=\"font-weight: 400;\"> create real value, customers are willing to pay.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><i><span style=\"font-weight: 400;\">For example:<\/span><\/i><span style=\"font-weight: 400;\"> assembly, design, order processing.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Non-value-added activities:<\/b><span style=\"font-weight: 400;\"> does not create value, often causes waste<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><i><span style=\"font-weight: 400;\">For example:<\/span><\/i><span style=\"font-weight: 400;\"> waiting, over-shipping, repeat testing, error correction.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">ABC provides foundational data to identify and eliminate non-value-added activities.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Quy_trinh_trien_khai_phuong_phap_ABC_Activity-Based_Costing\"><\/span><b>ABC (Activity-Based Costing) method implementation process<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Below is a 7-step process for implementing the ABC method in management accounting.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Buoc_1_%E2%80%93_Xac_dinh_pham_vi_va_muc_tieu\"><\/span><b>Step 1 \u2013 Define Scope and Objectives<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Define the scope of implementation: enterprise-wide, a single plant, a single product line, or a single customer group.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Clarify the questions to be answered: <\/span><i><span style=\"font-weight: 400;\">Which products are being mispriced? Which customers cost a lot to support? Which sales channels are losing money?<\/span><\/i><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Set specific goals: increase cost accuracy, support pricing strategy, optimize product structure.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Buoc_2_%E2%80%93_Xac_dinh_va_liet_ke_cac_hoat_dong\"><\/span><b>Step 2 \u2013 Identify and list activities<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Redraw the main business process chain from input to output (purchasing \u2013 production \u2013 sales \u2013 customer care).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">List activities step by step in the process: ordering, warehousing, processing, inspection, packaging, shipping, warranty.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Communicate with departments to avoid missing out on \u201cbehind the scenes\u201d activities such as internal reporting, meetings, and troubleshooting.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Buoc_3_%E2%80%93_Gom_nhom_hoat_dong_thanh_Cost_Pools\"><\/span><b>Step 3 \u2013 Group activities into Cost Pools<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Group activities that are similar in goals, characteristics, and drivers into the same cost pool to optimize the number of pools.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For example: \u201cinput quality inspection\u201d, \u201cin-line inspection\u201d, \u201cfinal inspection\u201d \u2192 common cost pool \u201cQuality inspection\u201d.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The goal is <\/span><b>detailed enough for analysis, compact enough for long-term operation<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Buoc_4_%E2%80%93_Tap_hop_chi_phi_cho_tung_Cost_Pool\"><\/span><b>Step 4 \u2013 Collect costs for each Cost Pool<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Collect resource costs: salary, allowance, electricity, water, depreciation, materials, maintenance...<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use <\/span><b>resource drivers<\/b><span style=\"font-weight: 400;\"> to allocate resource costs to cost pools.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For example, allocate quality engineer salaries according to the proportion of time spent on each activity.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Buoc_5_%E2%80%93_Xac_dinh_Cost_Drivers_cho_tung_hoat_dong\"><\/span><b>Step 5 \u2013 Identify Cost Drivers for Each Activity<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Select drivers that have a clear cause-and-effect relationship with the cost of the operation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For example:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Cost pool <\/span><b>\u201cSetup machine\u201d<\/b><span style=\"font-weight: 400;\"> \u2192 Cost driver <\/span><b>\u201cNumber of setups\u201d<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Cost pool <\/span><b>\u201cOrder processing\u201d<\/b><span style=\"font-weight: 400;\"> \u2192 Cost driver <\/span><b>\u201cOrder number\u201d<\/b><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Avoid choosing drivers just because they are easy to collect but do not reflect the true nature of the cost.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Buoc_6_%E2%80%93_Tinh_ty_le_chi_phi_hoat_dong_Activity_Rate\"><\/span><b>Step 6 \u2013 Calculate the Activity Rate<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Using the formula:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Activity Rate=Total Cost PoolTotal Driver PoolActivity Rate=Total Driver PoolTotal Cost Pool\u200b<\/span><\/p>\n<p><b>For example:<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">Cost pool \u201cQuality Check\u201d costs 200 million, total number of checks 1,000 \u2192<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Each test costs 200,000 VND.<\/b><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Buoc_7_%E2%80%93_Phan_bo_chi_phi_xuong_san_pham_dich_vu_khach_hang\"><\/span><b>Step 7 \u2013 Allocate costs down to product\/service\/customer<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determine how many driver units each cost object consumes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Multiply the number of driver units by the activity rate, plus the direct costs (raw materials, direct labor) to get the ABC costing.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Compare with traditional prices to assess the level of deviation and find the cause.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Vi_du_minh_hoa\"><\/span><b>Illustrative example<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Products A and B have the same raw material cost. However, product B requires more machine setups and more inspections.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Traditional method:<\/b><span style=\"font-weight: 400;\"> The prices of A and B are almost the same.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>According to ABC:<\/b><span style=\"font-weight: 400;\"> The overhead cost allocated to B is much higher then <\/span><b>B&#039;s profit margin is low or at a loss.<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">From there, businesses need to answer:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Should the selling price of B be adjusted?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Can production process B be optimized?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Should B be removed from the product portfolio?<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_999979382\" aria-describedby=\"caption-attachment-999979382\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999979382\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri-5.png\" alt=\"abc-method-in-management-accounting 3\" width=\"1200\" height=\"580\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri-5.png 1687w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri-5-300x145.png 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri-5-1024x495.png 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri-5-768x371.png 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri-5-1536x742.png 1536w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri-5-18x9.png 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999979382\" class=\"wp-caption-text\">By linking them to the actual activities that generate costs, the ABC method provides more detailed information for strategic decision making and effective management of business operations.<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Ung_dung_phuong_phap_ABC_trong_quan_tri_doanh_nghiep\"><\/span><b>Applying ABC method in business administration<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The ABC method applied in business administration helps improve operational efficiency: Improve decision-making ability, minimize resource waste and enhance competitiveness.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Tinh_dung_gia_thanh_phan_tich_loi_nhuan_da_chieu\"><\/span><b>1. Calculate the correct cost and analyze multidimensional profits<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ABC helps determine the exact cost for each product, service, order or customer.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Businesses can clearly see which products are truly profitable and which products are being &quot;eroded&quot; by indirect costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Profit analysis is not only by product but also by customer \u2013 sales channel \u2013 market, helping to make accurate decisions instead of just relying on emotions.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"2_Loai_bo_chi_phi_khong_tao_gia_tri_toi_uu_quy_trinh\"><\/span><b>2. Eliminate non-value-added costs &amp; optimize processes<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Through operational analysis, businesses can easily identify redundant steps: repeated testing, error correction, waiting, unnecessary transportation, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Combining ABC with Lean\/Kaizen helps cut waste, shorten lead-time and improve operational efficiency.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Non-value-added activities can be reduced, automated, or eliminated altogether to optimize costs.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"3_Ho_tro_quyet_dinh_chien_luoc\"><\/span><b>3. Support strategic decisions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">ABC provides foundational data for making strategic decisions such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Should a product line be continued or discontinued?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Should you produce it yourself or outsource it?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which customer segment should I focus my resources on to maximize profits?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Price products based on real costs, not on emotions or market levels.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Uu_diem_nhuoc_diem_nhung_hieu_lam_thuong_gap_ve_phuong_phap_ABC_trong_ke_toan_quan_tri\"><\/span><b>Advantages, disadvantages &amp; common misconceptions about ABC method in management accounting<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Correct and complete understanding of the ABC method is an important condition before implementation.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Uu_diem_noi_bat_cua_ABC\"><\/span><b>Outstanding advantages of ABC<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Increase cost accuracy<span style=\"font-weight: 400;\">, especially in businesses with multiple products, multiple variants, or complex service structures.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Provides insight into costs by activity and by customer<span style=\"font-weight: 400;\">, helping to understand where costs are being spent and why.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Creating the foundation for strategic cost management<span style=\"font-weight: 400;\">, not only serves the purpose of calculating costs for reporting but also supports business decision making.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Nhuoc_diem_va_rao_can_trien_khai\"><\/span><b>Disadvantages and barriers to implementation<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Collecting detailed data is time-consuming and resource-intensive.<span style=\"font-weight: 400;\">, especially if the business is operating on distributed Excel and lacks a synchronized system.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Requires a shift in thinking<span style=\"font-weight: 400;\"> from financial accounting (recording) to management accounting (analysis - decision) perspective.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">The ABC model is easily outdated.<span style=\"font-weight: 400;\"> If operating procedures change continuously without the technology system to support updates.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Nhung_hieu_lam_pho_bien_ve_ABC\"><\/span><b>Common Misconceptions About ABC<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>\u201cABC must deploy the entire company<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In practice, it can be as simple as starting small, with one shop floor, one product line, or one customer group to test and optimize.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>\u201cABC will completely replace traditional accounting\u201d<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u00a0False. ABC is <\/span><b>additional class<\/b><span style=\"font-weight: 400;\"> to serve decision making, not to replace financial statements.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>\u201cABC is only suitable for large corporations\u201d<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Not exactly. <\/span><b>Small and medium enterprises can completely apply<\/b><span style=\"font-weight: 400;\">, if you know how to narrow down the scope and have supporting technology tools.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cong_nghe_phan_mem_ho_tro_trien_khai_phuong_phap_ABC_trong_ke_toan_quan_tri\"><\/span><b>Technology &amp; software supporting the implementation of the ABC method in management accounting\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The ABC (Activity-Based Costing) method helps businesses calculate correctly and fully costs by activity, by product and by customer. However, <\/span><b>ABC only truly delivers when supported by technology.<\/b><span style=\"font-weight: 400;\">, because the nature of ABC requires detailed, constantly updated data and the ability to analyze in depth.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Vai_tro_cua_ERP_EPM_va_phan_mem_ABC\"><\/span><b>The role of <a href=\"https:\/\/bizzi.vn\/erp-la-gi-phan-mem-erp-mang-lai-loi-ich-gi-cho-doanh-nghiep\/\">ERP<\/a>, <a href=\"https:\/\/bizzi.vn\/epm-la-gi\/\">EPM<\/a> and ABC software<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Many businesses want to implement ABC but are \u201cstuck\u201d because:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Data is scattered across many Excel files, many departments, difficult to synchronize.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Manually synthesizing cost pool and cost driver \u2192 error-prone, slow, inconsistent.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The model cannot be updated when the manufacturing process or cost structure changes.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">ERP systems such as <\/span><b>SAP, Oracle, Odoo, Microsoft Dynamics<\/b><span style=\"font-weight: 400;\"> acts as a platform for storing and managing the business&#039;s operational data. And ERP takes care of the actual data, the system <\/span><b>EPM<\/b><span style=\"font-weight: 400;\">\u00a0will be responsible for management analysis and financial planning. Combined with specialized ABC software - automating complex operations helps reduce the risk of errors - increase speed - ensure transparency in cost management.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The three combined systems help the application of ABC method in management accounting not only become a cost calculation problem, but also a tool to create competitive advantage and optimize profits.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Ket_noi_ABC_voi_du_lieu_chi_phi_tu_Bizzi\"><\/span><b>Connect ABC with cost data from Bizzi<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In the ABC model, the accuracy of cost data is vital. Bizzi acts as the system <\/span><b>collect \u2013 standardize \u2013 attach costs to the right objects<\/b><span style=\"font-weight: 400;\">, creating an ABC-ready data platform.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Bizzi_IPA_3-way_matching\"><\/span><b>Bizzi IPA + 3-way matching<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Minimize errors due to manual data entry and ensure ABC input data is accurate and transparent.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automatic collection and testing <a href=\"https:\/\/bizzi.vn\/hoa-don-dau-vao-la-gi-tiet-lo-cach-quan-ly-hoa-don-dau-vao-toi-uu-va-hieu-qua\/\">input invoices<\/a>.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Perform 3-way reconciliation (Invoice \u2013 PO \u2013 GRN) to ensure cost validity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automatically classify and transfer costs to the correct accounting account, department, and cost bearer.<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Bizzi_Expense_Travel\"><\/span><b>Bizzi Expense \/ Travel<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/bizzi.vn\/chi-phi-van-hanh-la-gi\">Operating costs<\/a> are directly tied to business operations rather than being lumped into overhead costs.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Record actual expenses from employees by project - department - order - customer.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Connect electronic documents, invoices, approval and payment history.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Create a fully allocated data source for ABC&#039;s cost pool.<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Giam_tai_buoc_tap_hop_chi_phi_cho_cost-pool\"><\/span><b>Offload the cost aggregation step to the cost-pool<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Instead of manual processing, businesses turn to cost analysis and optimization \u2013 the true nature of ABC.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Eliminate data entry and consolidation from multiple Excel, multiple disparate systems.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Significantly reduce data preparation time for ABC on a monthly\/quarterly basis.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Create foundational data to automate attribution and profit analysis by audience.<\/span><\/li>\n<\/ul>\n<p><b><i>In short, Bizzi makes the application of ABC method in management accounting feasible and effective, especially for businesses with a large number of invoices and many departments involved in operations.<\/i><\/b><\/p>\n<h3><span class=\"ez-toc-section\" id=\"AI_va_tu_dong_hoa_trong_ABC_nang_cao\"><\/span><b>AI and Automation in Advanced ABC<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">When ABC is supported by smart technology, the cost model is not only accurate but also becomes a living tool, continuously reflecting business operations.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"1_AI_%E2%80%93_Goi_y_cost_driver_toi_uu\"><\/span><strong>1. AI \u2013 Suggesting optimal cost driver<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Based on historical data and cost patterns, AI can recommend the appropriate cost driver for each operation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Helps reduce manual analysis time and increase the accuracy of cost allocation.<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"2_Machine_Learning_%E2%80%93_Phat_hien_bat_thuong\"><\/span><strong>2. Machine Learning \u2013 Anomaly Detection<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The system learns from cost and activity history to detect unusual patterns.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Timely warning of unreasonable cost activities, helping administrators to quickly adjust.<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"3_RPA_Robotic_Process_Automation_%E2%80%93_Tu_dong_cap_nhat_mo_hinh\"><\/span><strong>3. RPA (Robotic Process Automation) \u2013 Automatically update models<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automatically collect data from ERP \/ Bizzi, update cost pools and cost drivers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rerun the ABC model periodically (monthly\/quarterly) without rebuilding it from scratch.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Helps keep the ABC model realistic and ready for strategic analysis.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Nganh_nghe_nao_nen_ap_dung_phuong_phap_ABC_trong_ke_toan_quan_tri\"><\/span><b>Which industries should apply the ABC method in management accounting?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Activity-Based Costing (ABC) method is especially useful for businesses with large indirect costs, diverse products\/services, and multiple operating channels, because ABC helps allocate costs accurately by activity, product, customer, or channel.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_San_xuat_Logistics\"><\/span><b>1. Production &amp; Logistics<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Businesses with many product lines and many processing stages: ABC helps determine the real cost for each product and shipment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Logistics, warehousing, transportation: evaluate costs by route, by customer, by order, helping to optimize operations and improve profit efficiency.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"2_Ngan_hang_bao_hiem_dich_vu_tai_chinh\"><\/span><b>2. Banking, insurance &amp; financial services<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Analyze the cost of serving each type of account and each customer segment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Understand the processing costs of each transaction and each channel (branch, online, mobile app), thereby optimizing operating costs and designing more effective products and services.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"3_Y_te_benh_vien_giao_duc\"><\/span><b>3. Healthcare, hospitals &amp; education<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determine the real cost of each treatment or training program.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Support in designing service packages, reasonable tuition fees and making strategic decisions on investment, human resources and equipment.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"4_Cong_nghe_SaaS_Thuong_mai_dien_tu\"><\/span><b>4. Technology, SaaS &amp; E-commerce<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Calculate the cost of serving each user, each order, each marketing channel.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Evaluate Customer Lifetime Value (CLV) and Cost-to-Serve at a granular level, helping to optimize marketing strategies and resource allocation.<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_999979383\" aria-describedby=\"caption-attachment-999979383\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999979383 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri-6.avif\" alt=\"abc-method-in-management-accounting-6\" width=\"1200\" height=\"630\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri-6.avif 1200w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri-6-300x158.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri-6-1024x538.jpg 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri-6-768x403.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/12\/phuong-phap-abc-trong-ke-toan-quan-tri-6-18x9.jpg 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999979383\" class=\"wp-caption-text\">The Activity-Based Costing (ABC) method is especially useful for businesses with large indirect costs, diverse products\/services, and multiple operating channels.<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Giai_dap_cac_cau_hoi_thuong_gap_ve_phuong_phap_ABC_trong_ke_toan_quan_tri\"><\/span><b>Answers to frequently asked questions about the ABC method in management accounting<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Refer to the summary content related to the ABC method below to help managers have a multi-dimensional perspective on the ABC method.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_ABC_dung_de_lam_gi_trong_ke_toan_quan_tri_va_khac_gi_phuong_phap_truyen_thong\"><\/span><b>1. What is ABC used for in management accounting and how is it different from the traditional method?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">ABC Purpose:<span style=\"font-weight: 400;\"> costing <\/span>accurate according to activity<span style=\"font-weight: 400;\">, analyze profits by product, customer, sales channel, thereby supporting strategic decision making.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Different from traditional method:<span style=\"font-weight: 400;\"> Traditional methods often allocate indirect costs based on labor hours or output, which can easily cause <\/span>price distortion<span style=\"font-weight: 400;\">, while ABC is based on <\/span>actual cause and effect<span style=\"font-weight: 400;\">, accurately reflect the cost of each activity.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"2_Cost_driver_la_gi_va_chon_driver_the_nao_de_tranh_lech_chi_phi\"><\/span><b>2. What is a cost driver and how to choose a driver to avoid cost deviation?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Driver cost:<span style=\"font-weight: 400;\"> is a measure that reflects <\/span>level of activity<span style=\"font-weight: 400;\"> of the cost object (e.g. number of orders, number of machine setups, number of machine running hours).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Select the correct driver:<span style=\"font-weight: 400;\"> must have <\/span>clear causal relationship with cost<span style=\"font-weight: 400;\">, do not choose driver just because it is easy to measure, avoid skewed allocation and distort cost.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"3_ABC_co_the_thay_the_hoan_toan_phuong_phap_truyen_thong_khong\"><\/span><b>3. Can ABC completely replace the traditional method?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">ABC does not completely replace traditional accounting.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Often used in parallel: traditional accounting serves financial reporting, while ABC provides detailed information for management and strategic decision making.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"4_Time-Driven_ABC_TDABC_la_gi_va_khac_gi_ABC_co_dien\"><\/span><b>4. What is Time-Driven ABC (TDABC) and how is it different from classical ABC?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">TDABC:<span style=\"font-weight: 400;\"> cost allocation based on <\/span>time spent on each activity<span style=\"font-weight: 400;\"> instead of relying on multiple complex cost drivers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Distinctive:<span style=\"font-weight: 400;\"> simpler, easier to deploy, reduces the need for detailed data collection for each activity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">When to use:<span style=\"font-weight: 400;\"> Businesses with many repetitive activities, large indirect costs, want to deploy ABC quickly and maintain easily.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"5_Doanh_nghiep_nho_co_nen_ap_dung_ABC_khong\"><\/span><b>5. Should small businesses apply ABC?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">May apply<span style=\"font-weight: 400;\">, but should <\/span>start small<span style=\"font-weight: 400;\">, for example, a product line, a department, or a customer group.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Benefits: understand costs, optimize processes, make informed decisions without overloading resources.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"6_ABC_co_the_ket_hop_voi_ERP_EPM_Bizzi_nhu_the_nao\"><\/span><b>6. How can ABC be combined with ERP \/ EPM \/ Bizzi?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">ERP:<span style=\"font-weight: 400;\"> Collect data on costs, time, and activity volume.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Bizzi:<span style=\"font-weight: 400;\"> Automate invoice collection, tag costs by project, department, order \u2192 standardize data for ABC.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">EPM:<span style=\"font-weight: 400;\"> ABC modeling, running \u201cwhat-if\u201d scenarios, analyzing profitability by product, customer, channel.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Result:<span style=\"font-weight: 400;\"> Reduce manual, increase accuracy, turn ABC into a tool <\/span>strategic management and quick decision making<span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Ket_luan\"><\/span><b>Conclude<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In short, applying the ABC method in management accounting is a way to help businesses clearly see costs by activity, product, customer, instead of just by the total number of departments. The ABC method is suitable for any business with large indirect costs, diverse activities and need detailed cost analysis to make accurate strategic decisions. Businesses can apply ABC to a cost segment, a product line or a factory, then expand when data and internal capacity are ready.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In general, the ultimate goal when applying any method to operations and management is not just to &quot;calculate the right cost&quot; but above all to &quot;put resources in the right place to maximize profits and customer value&quot;. <\/span><span style=\"font-weight: 400;\">The ABC method in management accounting, when combined with ERP, EPM, and AI solutions, becomes easier and more accurate. Strategic decision-making is no longer just a theoretical model.<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>Activity-Based Costing (ABC) is a costing method that focuses on activities, putting costs &quot;in the right place.&quot; The ABC method in management accounting...<\/p>","protected":false},"author":56,"featured_media":999979381,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[263,84],"tags":[],"class_list":["post-999979376","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kien-thuc","category-thiet-lap"],"acf":[],"_links":{"self":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999979376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/comments?post=999979376"}],"version-history":[{"count":4,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999979376\/revisions"}],"predecessor-version":[{"id":999980435,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999979376\/revisions\/999980435"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media\/999979381"}],"wp:attachment":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media?parent=999979376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/categories?post=999979376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/tags?post=999979376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}