Learn Your Accounting ABCs --Dickeson

The basic idea of ABC is that support departments, such as estimating, customer service, purchasing, materials management, scheduling, sales, accounting, etc., engage in activities that generate costs. They're resource consumers. True. Those departments now operate without statistical measurement and control. Presently, we just load all those support costs into a Budgeted Hourly Rate (BHR). That rate is added to the BHR table for job chargeable hours. True. All true.