--%>
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 : Explain Full-Absorption Costing

    Full-Absorption Costing: It is a technique of costing that assigns (or absorbs) all labor, material, and service or manufacturing facilities and support costs to products or another cost objects. The costs assigned comprise those which do and do not d

    		•
  • Q : Industry and your accounting place How

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

    		•
  • Q : Why most of the larger businesses are

    Why most of the larger businesses are not managed as the single unit through one manager?

    		•
  • Q : Fixed capital of partners Explain the

    Explain the term fixed capital of partners? Answer: Partners' capital is state to be fixed if the capital of Partners remains unchanged except in the situation where

    		•
  • Q : Classification of costs with examples

    describe how costs can be classified giving examples in each classification. explain how the different cost classifications can assist management in decision making

    		•
  • Q : Define Variance Variance : The rate,

    Variance: The rate, amount, extent, or degree of change, or the divergence from a preferred state or characteristic.

    		•
  • Q : Define Unit Cost Unit Cost : The cost

    Unit Cost: The cost of a chosen unit of a good or service. Illustrations comprise dollar cost perton, machine hour, labor hour, and department hour.

    		•
  • Q : Understandability-Accounting information

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

    		•
  • Q : Define Partnership Accounting

    Partnership Accounting: A business can be a firm, a partnership, or a solitary proprietorship. The corporation is incorporated at state level. The sole proprietorship is one person in business. A partnership is two or more than two persons with an agr

    		•
  • Q : Liability of partners Liability of

    Liability of partners: A) Under contract law: Liability is joint only (collectively); The creditor has only one right of action (except in NSW, where liability is now joint and several).