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What type of companies would benefit using the activity based costing?
Wiki User
∙ 14y ago
Following type of companies
1) Those who want to perform better
2) Those who want to be competitive
What specific types of companies would be better served with variable costing as opposed to absorption costing? Why?
Wiki User
∙ 14y ago
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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 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 ?!?!?!?!
Can Activity Based Costing be used in a service company?
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.
Top 5 companies?
There are a great number of companies that are considered to be the top five. These companies vary based on who you talk to.
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.
What type of organization is most likely to benefit from using activity-based costing for product costing?
The companies benefiting the most from ABC would be companies with a significant amount of overhead pertaining to a diversity of activities in providing goods (or services) to customers whose demands also vary.
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
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.
Company using absorption costing?
It is old costing technique & it is replaced by activity based costing
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.
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.
Why activity based costing?
Activity based costing allocate the overhead expenses based on activities performed and that's why it is an accurate way to allocate overhead expenses while in absorption costing, overheads are allocated based on some ratios or predetermined rate which is not accurate method of allocation of cost.
