Activity Based Costing

Activity Based Costing ACTIVITY BASED be AND MANAGEMENT : AN OVERVIEW Activity Based Costing ( alphabet) is much germane(predicate) than traditional costing in companies, where product mix is various in; batch sizes, physical sizes, degree or complexity, and warm material characteristics. ABC give also provide more decision useful info for the service industry, characterized by diverseness in range of services provided. If the products in a define or services provided posses similar characteristics, wither volume establish or an activity establish cost driver will provide reasonably accurate costs.

The strategic goal of ABC is to provide decision useful cost and profitability information for optimal pricing decisions, appropriate product mix, and operational improvements by focusing on activities and cost drivers. (Burch 1994) ABC provides a closer approximation of the cost of product, than that provided by the traditional volume based costing method. The use of ABC in itself will no...If you need to get a full essay, order it on our website: Ordercustompaper.com

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