Activity-Based Costing (ABC) software is a specialized type of financial management tool designed to implement and automate the activity-based costing methodology, which identifies and assigns costs to specific business activities such as production processes, order fulfillment, or customer support rather than relying on traditional volume-based metrics like labor hours or machine time. This software enables organizations to map activities to resources, drivers, and outputs; allocate indirect costs proportionally based on actual consumption; and generate detailed reports, dashboards, and insights for better understanding of true product or service profitability, resource optimization, and decision-making. It provides profitability analysis, precise cost allocation, and enterprise scalability, and is primarily used by finance teams, business analysts, and executives for strategic decision-making.