Utilizing Activity-Based Costing To Manage The Maintenance Function In A Manufacturing Company

Abstract

Maintenance is the term used by many industries and businesses to describe the broad functions associated with preserving assets.  Of course, preserving assets requires the expenditure of funds.  In many industries, the amount of monetary funds dedicated to maintenance functions can exceed 40% of a typical operating budget.  However, even at this level of spending, management decision-making in the maintenance area is generally accomplished without the necessary information or strategy other business areas demand.