Leveraging Advanced AI in Activity-Based Costing (ABC) for Enhanced Cost Management

Abstract

The integration of Artificial Intelligence (AI) into Activity-Based Costing (ABC)
systems represents a pivotal transformation in cost accounting methodologies.
This paper explores the practical application of AI-driven ABC systems in modern
enterprises, emphasizing their impact on improving cost allocation precision,
operational efficiency, and strategic decision-making. Through a thorough
examination of algorithmic frameworks, comprehensive case studies, and
measurable outcomes, this study demonstrates how AI can fundamentally
reshape cost management practices and support broader organizational
objectives.