BUSS1030 Lecture Notes - Lecture 11: Activity-Based Costing, Indirect Costs, Cost Driver

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1030
• Professor: Abdul Razeed

Document Summary

Week 11 full costing how to set the prices on our products. Explain the nature of full costing, and the reasons why this information is useful to managers. Deduce the full cost of a unit of output in a single or multi-product (or service) environment, differentiate between direct and indirect costs, and discuss the problem of charging overheads to jobs in a multi-product (multi-service) environment. Explain the advantages of segmenting overheads, and use this approach to apply overheads on a departmental basis. Explain the principles of activity-based costing (abc), apply cost drivers, and compare abc with the traditional system of total absorption costing. Identify and explain the main uses of full cost information, and the main criticisms of full costing, and apply the concepts of relevant costing and full costing appropriately to several decision-making situations. Cost accounting measuring, recording and reporting costs of any cost object eg. product, service etc.