What does the term "activity-based costing" refer to in GCSS Army?

The term "activity-based costing" in the context of GCSS Army refers to a method that allocates resources to specific tasks based on actual activity. This approach allows for more accurate costing by identifying and assigning costs to activities that consume resources. By understanding the true cost of activities, units can better manage their resources, optimize their operational effectiveness, and enhance decision-making regarding supply management.

Utilizing activity-based costing supports the Army's mission by providing clear insights into how resources are utilized on necessary tasks, enabling leaders to make informed decisions about budgeting, resourcing, and improving supply chain efficiency. This strategic focus on actual activities helps align the costs incurred with the operational objectives of the unit, ensuring that resources are invested where they will have the most significant impact.