what is activity based costing?
Answers
Answered by
3
Answer:
Activity-based costing is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each. Therefore this model assigns more indirect costs into direct costs compared to conventional costing.
Answered by
55
Answer:
ᴀᴄᴛɪᴠɪᴛʏ ʙᴀsᴇᴅ ᴄᴏsᴛɪɴɢ
☛ᴀᴄᴛɪᴠɪᴛʏ-ʙᴀsᴇᴅ ᴄᴏsᴛɪɴɢ ɪs ᴀ ᴄᴏsᴛɪɴɢ ᴍᴇᴛʜᴏᴅ ᴛʜᴀᴛ ɪᴅᴇɴᴛɪғɪᴇs ᴀᴄᴛɪᴠɪᴛɪᴇs ɪɴ ᴀɴ ᴏʀɢᴀɴɪᴢᴀᴛɪᴏɴ ᴀɴᴅ ᴀssɪɢɴs ᴛʜᴇ ᴄᴏsᴛ ᴏғ ᴇᴀᴄʜ ᴀᴄᴛɪᴠɪᴛʏ ᴛᴏ ᴀʟʟ ᴘʀᴏᴅᴜᴄᴛs ᴀɴᴅ sᴇʀᴠɪᴄᴇs ᴀᴄᴄᴏʀᴅɪɴɢ ᴛᴏ ᴛʜᴇ ᴀᴄᴛᴜᴀʟ ᴄᴏɴsᴜᴍᴘᴛɪᴏɴ ʙʏ ᴇᴀᴄʜ. ᴛʜᴇʀᴇғᴏʀᴇ ᴛʜɪs ᴍᴏᴅᴇʟ ᴀssɪɢɴs ᴍᴏʀᴇ ɪɴᴅɪʀᴇᴄᴛ ᴄᴏsᴛs ɪɴᴛᴏ ᴅɪʀᴇᴄᴛ ᴄᴏsᴛs ᴄᴏᴍᴘᴀʀᴇᴅ ᴛᴏ ᴄᴏɴᴠᴇɴᴛɪᴏɴᴀʟ ᴄᴏsᴛɪɴɢ.
Similar questions