--%>
Assignment Help - homework help

Activity-based costing

 

A method of assigning overhead costs to products. The first step is to analyze the cost of various activities. This approach looks like at activities (such as changing specifications for a digital painting machine or the cost of processing customer orders) as distinct parts of drudgery. These activities are then identified as cost drivers. Activity-based costing uses cost drivers to assign overhead costs to product or services. Traditionally, manufacturing companies have used the bulk number of direct labor hours as the method of allocating overhead. Activity-based revenue compels manufacturing companies to analysis what is contributing acquired surplus 20 to the price of the product beyond the usual labor and materials 

 

 

   Related Questions in Managerial Accounting

  • Q : Reaping the benefits of IT What do you

    What do you mean by the term reaping the benefits of IT? Explain n brief?

    		•
  • Q : Reliability-Accounting information What

    What do you mean by the term Reliability which is accounting information?

    		•
  • Q : Techniques to liberate the function of

    Write down the different techniques employed to liberate the function of management accounting?

    		•
  • Q : Industry and your accounting place How

    How have you observed the regulations which affect both your industry and your accounting place?

    		•
  • Q : Asset retirement obligation Significant

    Significant costs associated with the disposal of asset. Accounting for asset retirement obligations requires estimating the cost and discounting estimate. The present value added to the asset's depreciable base and a liability is recorded for the obligation. Every year, interest expense is added

    		•
  • Q : What is Controllable Cost Controllable

    Controllable Cost: A cost which can be influenced by the action of responsible manager. The word always refers to a particular manager as all costs are controllable by somebody.

    		•
  • Q : Child tax credit A type of personal tax

    A type of personal tax credit that reduces the amount a taxpayer must pay. The child tax credit is $1,000 (in 2008) for each child meeting the criteria the child must be a U.S.  National, citizen, or resident under 17, a dependent of the taxpayer, and a grandchil

    		•
  • Q : Define the term Strategic management

    Briefly define the term Strategic management and also state the reason why it is designed?

    		•
  • Q : Operation of business

    What are the main reasons that the operation of business environment has become ever more turbulent and competitive?

    		•
  • Q : Describe fluctuating capital of partners

    Describe fluctuating capital of partners? Answer: Partner‘s capital is stated to be fluctuating if capital modifies with every transaction in the capital accou

    		•