[Verse 1]
Traditional costing spreads overhead wide
Using volume as the only guide
But activities drive the real expense
ABC makes the numbers make sense
Manufacturing setup, quality control
Each activity plays a different role
Machine hours don't tell the whole story
Time to give each cost its glory
[Chorus]
Activities Based Costing shows the way
A-B-C for accuracy today
Cost pools formed by what we do
Cost drivers make it clear and true
Activities Based Costing lights the path
A-B-C gets better math
Complex products need this view
ABC will see you through
[Verse 2]
First identify each activity
That consumes resources naturally
Group them into homogeneous pools
These are ABC's essential tools
Find the driver for each cost pool
What makes expenses rise as a rule
Setup hours, inspection time
Each driver helps the costs align
[Chorus]
Activities Based Costing shows the way
A-B-C for accuracy today
Cost pools formed by what we do
Cost drivers make it clear and true
Activities Based Costing lights the path
A-B-C gets better math
Complex products need this view
ABC will see you through
[Bridge]
Unit level, batch level too
Product level, facility's due
Four levels of activity
Create cost transparency
High volume products subsidize
The complex ones that make costs rise
ABC reveals the truth inside
No more cross-subsidization to hide
[Verse 3]
Calculate the driver rate
Divide pool costs, don't hesitate
Apply the rate to products made
Based on activities they've displayed
More accurate than traditional ways
Especially in these modern days
When overhead costs dominate
ABC will calculate
[Chorus]
Activities Based Costing shows the way
A-B-C for accuracy today
Cost pools formed by what we do
Cost drivers make it clear and true
Activities Based Costing lights the path
A-B-C gets better math
Complex products need this view
ABC will see you through
[Outro]
When operations get complex
ABC is what comes next
Activity based and true
Better decisions wait for you