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Activity-based Costing (ABC) vs Traditional Costing Print RSS Modified on 2011/07/21 10:30 by swathen Categorized as Uncategorized » Activity-based Costing (ABC) vs Traditional Costing See Also: Activity Based Costing Standard Costing System Cost Driver Value Chain Implementing Activity Based Costing Absorption vs Variable Costing Activity Based Management Process Costing Overhead Job Costing ABC Costing vs Traditional Costing In the field of accounting, activity-based costing and traditional costing are two different methods for allocating indirect ( overhead ) costs to products. Both methods estimate overhead costs related to production and then assign these costs to products based on a cost-driver rate. The differences are in the accuracy and complexity of the two methods. Traditional costing is more simplistic and l