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ABC Costing in Make to Order of Repetive Manufacturing
Zaheer
I think ABC costing works better only in repetitive manufacturing type of industry, where the amount of production in a given period is steady.
Whereas in a make to order environment ABC may not work well, because the profit and expenditure have to be tracked by order. One order may last for several perods.
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ABC can Work in Make to Order ProductionJim Monahan, Member It seems you are getting too detailed, you need to step back and look at the big picture. 80/20 rule. Create families as far as the products go and use activities that organizationally driven. |
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