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The important characteristics of ABC are noted below:
v 1)Simple traditional distinction made between fixed cost and variable cost is not enough guide to provide quality information to design a cost system.
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2)The more appropriate distinction between cost behaviour patterns are volume(scale) related, diversity(scope) related, events(decisions) related and time related.
v 3)Cost drivers need to be identified. A cost driver is a structural determinant of cost related activity. The logic behind is that cost drivers dictate the cost behaviour pattern. In tracing overhead cost to product, a cost behaviour pattern must be understood so that appropriate cost driver could be identified.
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Steps used in activity base costing?
Who is Beau Kazer
Differences between conventional costing methodology and activity costing?
difference between conventional costing methodology ang activity costing
What is the characteristics and purpose of Job Costing and Process costing?
what is the purpose of process costing?
What is the and purpose of Job Costing Process Costing?
outline the characteristics and purpose of: Job costing and process costing
What are the characteristics of kaizen costing?
characteristics of kaizen
Outline the characteristics and purpose of job costing and process costing?
Job costing characteristics and purpose of it: its purpose is to is to calculate the cost of the materials found in the wastestream based on purchase price of materials. Please assist me with further characteristics and purpose of job costing and process costing to this extent.
Difference between activity based costing and absorption costing?
In Activity based costing all overheads are charged to function or department based on activities they perform while in absorption based accounting, overheads are apportioned using some kind of base rate like labor hours or machine hours etc.
Company using absorption costing?
It is old costing technique & it is replaced by activity based costing
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 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.
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 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.
