Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. general management
  3. define activity based cost and its impact on profi

Define Activity Based Cost and its impact on profitbility.

90.2K

Verified Solution

Question

General Management

Define Activity Based Cost and its impact on profitbility.

Answer & Explanation Solved by verified expert
3.6 Ratings (557 Votes)
Activitybased Costing which is more popularly known as ABC method is an accounting method in which the firms identify the various activities and then assigns indirect costs incurred to carry out those activities The impact of ABC on the costing process is as follows It expands the total number of cost pools and hence is able to assemble overhead costs better and allocate it to particular cost pools It alters the nature of various indirect cost and assigns them to various activities for example costs like depreciation the power consumed office supplies etc Costs are allocated on the basis of activities that generate them instead of another measure of    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

We’ve seen in this lab exercise that proteins can be involved in more than one biological...

Biology
Q

Abby asked several kids how many hours of TV they watch each day She also...

Geometry
Q

For a Halloween party, each guest can choose from the 15 different kinds of candy...

Basic Math
Q

Simplify the Boolean expression ABC A B B C A B C

Calculus
Q

Decision making is an integral part of the planning, directing, and motivating functions, but not...

Accounting
Q

Brief Exercise 6-4 (Algo) Depreciation expense using the units-of-production method LO 6-4 Clean Air Company...

Accounting
Q

Total comprehensive income (final total) Net income $8,700 Other comprehensive income (subtotal) ...

Accounting
Q

Product X Product Y Total Sales volume (units) 400 600 1,000 ...

Accounting
Q

.

Accounting
Q

Revenues (16,000its soo Vanable costs per unit Selling Contibution agn Fixed costs toca $200.000 Selling...

Accounting
Q

Discuss the differences between centralized and decentralized decision making

Accounting
Q

Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Jeong Company prepared...

Accounting