Activity-based costing - abc, Financial Management

An accounting technique that identifies the activities that a firm does, and then allocates indirect costs to products. An activity based costing (ABC) system finds the relationship between activities, costs and products, and by this relationship allots indirect costs to products less arbitrarily than conventional methods.      

Some costs are hard to allocate by this method of cost accounting. Indirect costs, like management and office staff salaries are at times hard to assign to a given product produced. For this reason, this technique has found its position in the manufacturing sector.

 

Posted Date: 7/27/2012 8:07:49 AM | Location : United States







Related Discussions:- Activity-based costing - abc, Assignment Help, Ask Question on Activity-based costing - abc, Get Answer, Expert's Help, Activity-based costing - abc Discussions

Write discussion on Activity-based costing - abc
Your posts are moderated
Related Questions
How many types of segments in the mutual fund industry? There are two segments into the mutual fund industry: long-term funds and short-term funds. In Long-term funds bond fund

Explain about opportunity cost of capital Risk free rate compensates for opportunity lost and risk premium compensates for risk. It can also be known as the 'opportunity cost o

Earning per share Earnings per share (EPS) are computed as profit attributable to equity divided by the number of shares in issue and ranking for dividends. EPS therefore repr

Future V alue The value of an investment is based on the rate of interest paid at set time periods and at some point in the future. Future values incorporate both the i

An analyst should first examine the issuers debt structure in order to analyze the tax-backed debts. The debt burden consists of respective direct a

Ask questiSuggestion regarding Credit limit. Should it be approved or not, what should be the amount of credit limit that electronics give to Booth Plastics.

What is Average Collection Period Ratio? Please provide me report on Average Collection Period Ratio.

how would you judge the potential

Steps involved in the Process of Securitization The following are the major steps involved: The lender (also called the originator) - in th

Assume that you have been consistently impressed by David and Tom Gardner of The Motley Fool since you first heard of their rather improbable rise to prominence in financial circ