This project focused on applying Activity-Based Costing (ABC) to assess production inefficiencies, optimize labor utilization, and identify cost-saving opportunities across multiple departments. Using real-world production data, I developed a multi-layered costing model that allocated overhead based on specific cost drivers such as machine hours, labor minutes, and batch setups.

The goal was to compare traditional cost accounting with ABC to uncover hidden inefficiencies in operational workflows. The analysis involved building a segmented Excel model that broke down costs per unit, traced indirect expenses, and highlighted underutilized capacity. I then interpreted the financial impact of reassigning labor and shifting production timelines based on cost driver behavior.

The project emphasized the strategic use of accounting data to improve decision-making, particularly around pricing, resource allocation, and production planning. This approach reflects how forward-thinking companies use ABC to stay competitive in complex manufacturing environments.