**Activity Based Costing is a system that can be
used to identifies activities of organization and assign the cost of each
activity based on set up cost drivers to all products or customers.
- Steps to follow:
- Cost Pools and Cost Drivers:
- Benefits of Activity Based Costing:
Excellent Chathu. Keep it up
ReplyDeletevery helpful for my studies. thank you.
ReplyDeleteThis sounds very good.
ReplyDeleteABC works best in complex environments like Garment manufacturing industry.
ReplyDeleteGood job…
Excellent..... Very useful tips..Thank you Upuli......
ReplyDeleteExcellent..... Very useful tips..Thank you Upuli......
ReplyDeleteThis blog is very useful for my assignment. If you can explain this further using an example will be more useful for graduates like me.
ReplyDeleteGood content, it clearly gives the basics and the concept to a layman reader.
ReplyDeleteWould have been more effective if you incorporated the examples of the industry.
Can you also mention the challenges in implementation?
You can talk to departments when identifying cost drivers.
ReplyDeleteSome cost drivers could be identify accurately by further categorizing the department cost.
Eg cutting department has a separate planning dept, manual cut dpt, CAD etc. Cost drivers might change with in cutting department as well
Benefits would be more clear if you could explain the difference between traditional & ABC costing through a simple example. Useful tool in developing pricing strategies, profitability analysis etc... thanks for sharing the knowledge.
ReplyDelete