Using Activity-Based Costing to Improve Performance: A Case Study Report

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The ongoing Department of Defense (DOD) downsizing and reorganization programs have had a significant impact on defense capabilities and resources. Declining defense resources, in particular, are providing significant incentives to improve the management of all costs in the DOD. To improve cost management, the DOD has identified activity-based costing (ABC) and activity-based management (ABM) for defense-wide implementation.