Activity-based costing ( ABC ) recognizes that , in modern factories , most manufacturing costs are determined by the amount of ` activities ' ( e.g. , the number of production runs per month , and the amount of production equipment idle time ) and that the key to effective cost control is therefore optimizing the efficiency of these activities .
Activity-based costing ( ABC ) recognizes that , in modern factories , most manufacturing costs are determined by the amount of ` activities ' ( such as the number of production runs per month , and the amount of production equipment idle time ) .