Supercharging Your ABC: Use Revenue Data!

Abstract As in most managerial decision making, activity‐based costing (ABC) requires that managers first determine what information is relevant. Historically, the focus of ABC systems has been almost entirely on costs, yet revenue‐oriented information is often highly relevant and useful. Incorporating both the revenue and expense sides of the income statement can make ABC far more powerful. © 2002 Wiley Periodicals, Inc.