The Process of Activity Based Costing (ABC) simplified


 
Activity Based Costing > Forum Log in

The Process of Activity Based Costing (ABC) simplified
rahul_6098, India
While doing ABC the only thing to be kept in mind is the activity and the cost associated with it.
For example : A businessman buys a bus for using it in his public transport business. So he will analyse the cost associated with procurement of bus. Then he will have to analyse the cost of getting a driver, everyday fuel consumption, maintainance, contingencies. Now by using ABC, he can eliminate all the unnecessary steps which add to the cost but don't add any (enough) value to the product.
ABC is a helpful tool if you have clarity of ABC and the process under observation.
 

 
The Process of Activity Based Costing Simplified
liza cristobal, Professor, Philippines
Rahul you really simplified the process but that's good, because even my daughter who is still studying will now understand what ABC means and what it is used for.
 

 











 

  Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  


Special Interest Group Leader

You here


More on Activity Based Costing
Summary
Forum
Best Practices

Expert Tips

Resources

About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2017 12manage - The Executive Fast Track. V14.1 - Last updated: 20-9-2017. All names tm by their owners.