It took just a short time for Activity-Based Costing (ABC) to be recognized as an innovative and potentially valuable costing methodology; yet it took another 20 years to reach its full potential. ABC emerged in response to competitive pressures that exposed inaccuracies in cost accounting. Early uses helped companies view the distortions inherent in cost accounting systems leading to changes in strategy, processes, operations, and improved competitive position. This article — by Peter B. B. Turney, PhD, of Cost Technology, Inc. — is available on SAS.com and examines the evolution of ABC. [pdf]