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actual is the actual cost, normal is estimating
difference between conventional costing methodology ang activity costing
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.
activity based costing does not promote TQM(total quality management) and continuous improvement but attribute based costing promotes the both.
accuracy
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.
actual is the actual cost, normal is estimating
difference between conventional costing methodology ang activity costing
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.
It is old costing technique & it is replaced by activity based costing
activity based costing does not promote TQM(total quality management) and continuous improvement but attribute based costing promotes the both.
accuracy
Answering "Problem relating to the implementation of activity based costing and activity based management system
In traditional costing, overheads are allocated using blanket rate while in activity based costing overheads are allocated by the activities performed.
B. N. Dutta has written: 'Estimating and costing in civil engineering'
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.
Hi Activity Based Costing could be seen as the 'Cause-and-Effect' realtionship in the costs. If we extend this logic then we can segregate all the costs in four sections. a) Product Costs b) Customer Costs c) Business Sustaining Costs d) Cost available to use In this sense the Activity Basedd Costing gives an accurate costing picture.