Determine abc system and service organizations, Managerial Accounting

Assignment Help:

ABC System and service organizations

The ABC system has been taken up as applied to a manufacturing organizations with the same efficiency. One basic characteristic of service organization is that most of the costs in these organization are fixed and indirect. On the other hand in manufacturing organization a significant portion of total cost is direct and is easily traced to a cost object. The overhead cost are relatively smaller. However there are service organization which deal in a variety of production and services and incur quite significant overheads. These overhead cannot easily be traced to individual product and service. For example bank provides a variety of services to the customer. Under ABC system the overhead cost of a bank can be allocated to different activities. Some of the activities and the relevant cost drivers for a bank are given hereunder:

Cost assigned to an activity are then allocated to different production and services on the basis of their demand for the activity and the cost driver is used as a measure of resource consumption.

 


Related Discussions:- Determine abc system and service organizations

Homework.., Give the following cost data Costs /per unit labor … $ 4 Mate...

Give the following cost data Costs /per unit labor … $ 4 Materials …5 Fixed cost … $ 12000 Determine the break even point in units if the selling price is $ 19.00 Determine th

State budgetary control, State Budgetary Control A budget is a quantita...

State Budgetary Control A budget is a quantitative expression of a plan of action relating to the forthcoming budget period. It represents a written operational plan of managem

Explain quality control and total quality control, Explain Quality control ...

Explain Quality control and Total quality control Quality control (QC) circles can be viewed as a group oriented suggestion system for making improvements. QC circle is a sm

Help, Jackson County Senior Services is a nonprofit organization devoted to...

Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three serv

Explain the characteristics of cost reduction, Characteristics of cost redu...

Characteristics of cost reduction 1) Cost reduction must be real : said through increase in productivity change in product design improvement in technology etc. 2) Cost r

What are the objectives of budgetary control, What are the Objectives of bu...

What are the Objectives of budgetary control 1) Planning : planning is an important managerial function. it helps to decide in advance, what to do how to do it when to do it a

Credit standards, This variable deals along with the granting of credit. On...

This variable deals along with the granting of credit. On one great all the customers are granted credit and conversely, none of them are granted credit irrespective of their credi

Standerd costing, Ask queThe standard cost of chemical mixture ~ PQ’ is as ...

Ask queThe standard cost of chemical mixture ~ PQ’ is as follows: 40% of material P @ Rs. 400 per kg. 60% of material Q @ Rs. 600 per kg. A standard loss of 10% is normally anticip

Define case study of orion financial management, Case study of Orion Financ...

Case study of Orion Financial Management - Portfolio Management? Maria Gilbert is a principal in the company of Orion Financial Management. For 20 years she was chief investm

Explain operating budgets, Explain Operating budgets These budgets rela...

Explain Operating budgets These budgets relate to the dissimilar activities or operation of a firm the number of such budgets depends upon the size and nature of business. The

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd