In ABC, work processes are broken down into activities so that the cost and performance effectiveness of the activities and processes can be measured.

ABC diagrams and analyzes work processes , functions, and activities
ABC Applies actual, full costs of operations to agency activities

ABC applications identify what work is done; how much time it takes; what resources (inputs) are consumed; and what output is achieved

ABC techniques capture the cost data necessary to answer the following:

Are agency operations:

• cost effective?
• timely?
• critical to overall mission?
• making best use of people and technologies?

• cost drivers?
• time drivers?
• high value activities?
• low value activities?

• saving money?
• spending money wisely per (unit of output)?
• productive per accepted business standards?