This spreadsheet presents, through an example, how the ABC Costing methodology is used to reduce distortions caused by arbitrary allocation of Indirect Costs. The need to adopt ABC costing comes with technological advances and the great diversity of products generally being produced in the same factory, which leads to an increase in Indirect Costs. The objective of ABC costing is to eliminate arbitrariness in the allocation of Indirect Costs, thus, it helps Absorption Costing by establishing more logical allocations for products.
 Note: The spreadsheets available for download are based on references from blog posts and should be viewed only as supplementary study material. We do not offer support for technical questions regarding the theoretical content of the spreadsheets. This material does not exempt the user from adequate monitoring by a professional in order to obtain greater reliability, both in execution and in calculations.