ipping" as a collection of activities, each of which has a controlled cost (Cadeaux, 1997).
There is another term to be considered. "Service Based Costs," or SBC. A Service Based Cost is the cost of all the activities performed to provide that service. Services consume activities, and activities consume resources. Today's ABC arguments can be traced to the scientific management theories of Frederick Taylor and called for the careful analysis of tasks and time-and-motion studies in conjunction with piece-rate pay schemes in order to improve productivity. Adherents of this approach searched for the "one best way to perform a specific task, and introduced standard parts and procedures. Taken to the extreme, the scientific management approach finds that there is a single best way to solve a given situation" (Klein, Dansereau & Hall, 1994, p. 219).
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