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ABC is generally used in the manufacturing industry, but I suppose if you have distinct services that you are providing you could make it work. You'd have to be able to separate your costs between the different services that you offer. Perhaps setting up various cost centres, or activity codes for the employees to charge time to for each job that they are working on might work.
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True or false direct labor-hours or direct labor cost should not be used as a measure of activity in an activity-based costing system?
False
What type of companies would benefit using the activity based costing?
Following type of companies1) Those who want to perform better2) Those who want to be competitiveWhat specific types of companies would be better served with variable costing as opposed to absorption costing? Why?
What is the difference between budgetary control and standard costing?
Budgetary Control is projection of financial accounts and std. costing is a projection of cost accounts. Variances are shown in total in thhe former and a detailed analysis of variances is done in the latter. In std. costing, cost data ior each activity is pre-determined based on normal level of operaion.
Describe the likely stages involved in the design and operation of an Activity Based Costing system?
Haha... James Kwan's student??? Assignment 1 ?!?!?!?! Haha... James Kwan's student??? Assignment 1 ?!?!?!?!
What country is the company Sanlam based in?
Sanlam Limited is a financial service company based out of South Africa. The head office is in Cape Town, and the company offers services to multiple other countries across the globe.
Company using absorption costing?
It is old costing technique & it is replaced by activity based costing
Problem relating to the implementation of activity based costing and activity based management system?
Answering "Problem relating to the implementation of activity based costing and activity based management system
Can Activity based Costing be used for an IT Company like Infosys Wipro?
In a simple answer, yes. Activity based costing can be a valuable tool for any environment that either makes something (manufacturing) or delivers something (service - such as IT outsourcing). One option would be to use driver data mapping services to specific customers to calculate "actual" cost estimates by service by customer in addition to tradional "activity" analysis.
What is the main difference between activity based costing and attribute based costing?
activity based costing does not promote TQM(total quality management) and continuous improvement but attribute based costing promotes the both.
Activity-based costing is a means of more accurately accounting for direct labor cost?
False. Activity-based costing is used to allocate indirect cost into direct costs.Regardng direct cost, traditional costing is as appropriate as activity-based costing.
What types of businesses could benefit from activity based costing?
Any company providing a "dynamic" good, where the methods are changing could benefit from activity based costing. Goods and services which always have the same overhead cost do not need such a schematic.
How does activity based costing differ from traditional based costing?
Activity based costing has primary difference of allocation of overheads which are based on activities performed by any department while in traditional costing system overheads are allocated on predetermined rate which may be not very accurate.
How does activity based costing relate to the objectives of a company?
Activity Based Costing does the calculation of costs, that can be segregated as Product, Service, Business Sustaining and Available to Use Costs. Mere calculation of those costs practically would not help anybody. Once has to go beyond those calculations and anlyse those costs. After analyzing (which can be performed in various ways) find out the action poins and work on them. Activity Based Costing is a concepts that can be used to support for various objective of the company. These objectives can be grouped in three parts a) Product and Customer Profitability b) Process and cost improvements c) Resource planning.
What is the differences between activity-based costing and traditional product costs?
In traditional costing, overheads are allocated using blanket rate while in activity based costing overheads are allocated by the activities performed.
What activities does activity based management encompass?
ABM strategically incorporates activity analysis, activity-based costing (ABC), activity-based budgeting, life cycle and target costing, process value analysis, and value-chain analysis.
Does Toyota use Activity based costing?
yes
How would you describe activity based costing?
Activity-based costing is a form of cost refinement, designed to obtain greater accuracy than traditional allocations in cost assignments for product costing and decision-making purposes.
