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Activity - based costing ( ABC ) is used widely within the U . S . government. One example is the Department of Agriculture's Animal
Activitybased costing ABC is used widely within the US government. One example is the Department of
Agriculture's Animal and Plant Health Inspection Service APHIS APHIS helps to protect US agriculture from exotic
pests and diseases, to minimize wildlife and agriculture conflicts, and to protect the welfare of animals used for
research or sold wholesale for pets. APHIS performs its services for a variety of users, some of whom pay a user fee.
ABC was adopted to provide an accurate basis for determining these fees, and also for analysis of the effectiveness
and efficiency of its programs in meeting the service's overall goals. Other examples of ABC use are noted in the
text, including the US Postal Service and the US Patent and Trademark Office.
Required:
Identify an example or two of a governmental entity that you think could benefit from the application of activity
based costing or activitybased management ABM and explain why.
Identify some of the resources, activities, and cost drivers you would expect to see in this application.
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