COMM 1102 Lecture Notes - Lecture 7: Cost Driver, Activity-Based Costing
15 Oct 2018
School
Department
Course
Professor
Document Summary
Chapter 7: activity based costing: a tool to aid decision making (abc) Abc is a supplement to the traditional costing system - it is not mandatory. Takes a long time + costly - not for everyone. Gives you some idea of what it costs to do certain activities. This information is not available through other systems. Find out what the cost is for certain key activities and set targets to reduce these costs. Activity based management - helps make strategic decisions. Could be used by small small companies to focus on key activities. Manufacturing overhead - converted to activities and there are activity rates. Costs pool - bucket to collect cost of that activity. Most but not all manufacturing costs are included in abc product costing, and some non- Each abc cost pool has its own unique measure of activity. Products are charged for the costs of.
