Friday, April 4, 2014

Activity-Based Costing - ABC

Definition of 'Activity-Based Costing - ABC'
An accounting method, that identifies the activities that a organization performs, & then assigns indirect costs to products;  An activity based costing (ABC) system recognizes the relationship between costs, activities & products, & through this relationship assigns indirect costs to products less arbitrarily than traditional methods;
     
Expertsmind.com explains 'Activity-Based Costing - ABC'
Some costs are difficult to assign through this method of cost accounting; Indirect costs, such as management & office staff salaries are sometimes difficult to assign to a particular product produced; For this reason’ this method has found its niche in the manufacturing sector.;

Get help Accounting and Management Accounting with Expertsmind.com

No comments:

Post a Comment