Topic: Activity Based Cost Accounting
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What is Activity Based Costing?
ABC, short for activity-based costing, is a costing model that identifies the costs and certain activities within an organization, which in turn helps to determine overhead prices for products and services. Look here for more information: h... Read More »
Source: http://answers.ask.com/Business/Other/what_is_activity_based_cost...
What is the difference between Activity-based costing and traditi...
Answer Activity-based costing is a more accurate cost management system than TCA. One would use the ABC method when overhead is high, products are diverse, cost of errors high and competition is stiff. Traditional Cost Accounting is unable ... Read More »
Source: http://wiki.answers.com/Q/Why+activity+based+costing+may+be+prefe...
When not to use Activity Based Costing?
I would like to answer this questions humorously. Pl do not use Activity Based Costing if; 1) You do not want to understand the profitability of the products, customers, channels. the true costs and cost drivers for the profitability. 2) Yo... Read More »
Source: http://wiki.answers.com/Q/When_not_to_use_Activity_Based_Costing
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Activity Based Cost Accounting
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mechanics of ABC system consists of : -overview -first-stage allocation -the other activity cost pool - Computation of activity rates - Second-stage allocations of costs to cost objects - Product and customer margins---activity view
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Source: http://wiki.answers.com/Q/What_is_mechanics_of_activity_based_cos...
Activity Based Costing Disadvantages · More time consuming to collect data · Cost of buying, implementing and maintaining activity based system · Makes waste visible which some executives and managers don't want their boss to see It may be ...
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Source: http://wiki.answers.com/Q/What_are_the_disadvantages_of_activity_...
This approach aims at deleting all the activities that do not add value and support all the activities that add value. Accordingly, the organization avoids all costs that are paid for no reason, i.e will save more money to support and enhan...
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Source: http://wiki.answers.com/Q/What_are_Activities_for_Activity_Based_...
This approach aims at deleting all the activities that do not add value and support all the activities that add value. Accordingly, the organization avoids all costs that are paid for no reason,
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Source: http://wiki.answers.com/Q/What_companies_use_Activity-based_costi...
Costs are assigned to activities from resource cost pools.
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Source: http://wiki.answers.com/Q/What_is_the_first_step_in_activity-base...
Advantages of Activity Based Costing System : Activity based costing system has the following main advantages / benefits: More accurate costing of products/services, customers, SKUs, distribution channels. Better understanding overhead. Eas...
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Source: http://wiki.answers.com/Q/What_are_the_benefits_of_activity-based...
