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.
An absorption costing is an accounting method used to calculate the total cost of a product by factoring in both direct and indirect costs.
The term "process costing" refers to the accounting method that takes into accounts all costs, either direct or indirect, during the manufacturing process of a product.
direct costing is a technique in which costs are classified as direct cost or indirect cost.
Variable costing is called marginal costing while direct costing is separate concept.
Direct cost is cost of product while direct costing is the process which study or accounts the direct cost allocation to products.
An absorption costing is an accounting method used to calculate the total cost of a product by factoring in both direct and indirect costs.
direct costs,indirect costs,sunk costs, Activity based costing.
The term "process costing" refers to the accounting method that takes into accounts all costs, either direct or indirect, during the manufacturing process of a product.
direct costing is a technique in which costs are classified as direct cost or indirect cost.
Variable costing is called marginal costing while direct costing is separate concept.
Yes marginal costing is also sometimes called direct costing.
'''Direct Costing'''
Direct cost is cost of product while direct costing is the process which study or accounts the direct cost allocation to products.
Direct costs are the ones that can be traced back to specific objects or items. Indirect costs cannot be traced accurately to anything specific.
marginal costing considers only direct) materials,labour,expenses and variable factory overheads excluding fixed factory overheads but absorption considers (direct) materials ,labour,expenses,variable and fixed factory overheads.
Direct cost is that cost which is directly identifiable with production volume while direct costing is the method or process through which direct cost is allocated to production.
Under absorption costing overheads are allocated to production based on predetermined overhead rates like machine hours, or direct labor hours etc while in direct costing overheads are allocated based on activity performed and relationship with production units.