The present textbook titled “Activity Based Costing” has been meticulously prepared to cater to the academic and practical needs of M.Com students, especially in alignment with the National Education Policy (NEP) 2020. The book is designed to enhance conceptual understanding, analytical ability, and application skills, with a focus on interdisciplinary learning and real-world relevance.

Activity Based Costing is an essential component of modern business practices. It ensures cost transparency, efficiency, and compliance with statutory regulations. The subject is not only vital for students aspiring to become cost auditors or management professionals but also for those aiming to contribute to sustainable business practices.

This book is structured to meet the curriculum framework recommended by NEP 2020, which emphasizes a holistic, flexible, and multidisciplinary approach to higher education. It encourages critical thinking, skill development, and ethical values through integrated content. Each chapter includes learning outcomes, conceptual clarity, practical examples, case studies, MCQs, and assignments to enhance student engagement and comprehension.

Salient features of this book include:

• Coverage of key concepts of Activity Based Costing, including its objectives, planning, execution, and reporting.
• Emphasis on legal framework and professional ethics relevant to cost auditing.
• Integration of real-life case studies and industry-based examples.
• Inclusion of self-assessment tools, such as objective questions, review questions, and practical problems.
• Focus on skill-based learning and outcome-based education as advocated by NEP 2020.
We hope this textbook serves as a valuable academic companion to students, teachers, and practitioners alike. We sincerely welcome feedback and suggestions for improvement in future editions.