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The analysis is based on a set of linear equations for a straight line and the separation of variable and fixed costs.
What else can I help you with?
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.
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.
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 zero based costing?
Costing without assumptions is known as zero based costing.In zero based costing each and every parameter of cost is derived either through Experiments or through formula.
What are different costing methods?
Different costing methods include job costing, process costing, activity-based costing (ABC), and standard costing. Job costing assigns costs to specific batches or projects, making it ideal for customized products. Process costing averages costs over continuous, homogeneous processes, suitable for mass production. Activity-based costing allocates overhead based on actual activities, providing more accurate cost insights, while standard costing involves setting budgeted costs for products to streamline variance analysis.
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.
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.
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.
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.
When company shifts to abc costing and manufacturing overhead is based on direct labor hours do unit product costs of high volume products decrease and low volume products increase?
ABC Costing: Under this method costs varies according to activity so if high volume of product is produced then direct labour also utilized accordingly and manufacturing cost will be increase or decrease according to the utilization of direct labour hours.
