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Definition of Activities based costing
Activity based costing is a system that focuses on activities as the fundamental cost objects and uses the costs of these activities as building blocks for compiling the cost of other objects.
Or
Cost attribution to cost units on the basis of benefits received from indirect activities I e. ordering setting up assuring quality etc. activity based costing is only a generic approach and it can a aprt of both order costing system or a process costing system.
Steps making DecisionTree A decision tree is a graphical representation of decision process indicating decision alternatives, states of nature, related probabilities and condit
calculate the net operating income , evergreen corp has provided the following data: sales per period 1000 units ,selling price $ 40 per unit , variable manufacturing cost 12 p
given a scenario when iddle capacity is less than the special order.in this case should we accept or reject the order
full explaination with diagram
In the earlier unit, we have studied how firms determine their requirements for current assets and manage their holdings in cash and marketable securities. Inside a classical manuf
Steps involved in ratio analysis The following are the four steps involved in the ratio analysis: 1) selection of relevant data from the financial statement depending upon t
WHY VARIANCES IS INVESTIGATED UNDER STANDARD COSTING
Prerequisites of a sound variances analysis system A variance analysis system would be good enough in controlling costs and evaluation performances if the following requirement
Gather Data about Alternatives When potential areas of activity are specified, management must assess the potential growth rate of the activities, the capability of the company
Manufacturing cost data for Sassafras Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufa
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