Activity-based costing (ABC) has become an important aspect of manufacturing/service organisations striving for a major share in the international markets. New productivity and quality improvement strategies facilitate an increase in the awareness of ABC in the present day manufacturing organisations and an appropriate framework for the management of productivity and quality. First, an overview of some literature on ABC and the role of ABC in advanced manufacturing systems are presented in this paper. Finally, a framework for the implementation of ABC in manufacturing is presented.
