Drivers still Right?

Activity Based Costing
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Activity Based Costing > Best Practices > Drivers still Right?

Drivers still Right?
Manwel
ABC is one of the most recent developed evolutions in costing. It has a big impact in allocating the cost to the right object... But still the question is: to what extent are the drivers right and effective? Does ABC require ongoing update of drivers? (...) Read more? Sign up for free

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  Activity Based Costing Limitation
Maggie
  Cost drivers are not easy to define and obtain.

  Definition of Drivers
Rajendra Patil, Consultant, India
  Generally people use the term 'accuracy' for both the ‘driver’ and the ‘driver data’ interchangeably. It may not be the case here though.
I would suggest that the definition of resource and activity drivers (ref. cam-i cross) must be very accurate. The corresponding data does not have to be so accurate initially. This accuracy of the data can be increased in the future (if required). But if the driver definition is inaccurate, then even if the driver data is accurate, the calculations would still be useless..
A cost driver (by cam-i cross definition) is a reason for the activity to have costs. For example:
Activity - assemble product
Cost driver: - # of parts to assemble
- design of the product
- quality of the parts received
The cost of the activity ‘assemble product’ would change if # of parts change or design change or the quality of the components change.

  Management Accounting
Debasish Basu, Accountant
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Activity Based Costing
Summary
Forum
🔥What is Process Costing?
What is Job Order Costing?
How to Derive Overhead Cost from a P&L?
Best Practices
🥇Limitations and Advantages of ABC for Budgeting
🥈Limitations ABC monitoring operations
🥉ABC in an Advertising Firm?
The Cost of Non-value-added Activities
ABC: reduce non value adding activities?
Consequences of ABC Analysis
Capacity Minutes and Industry Norms
Drivers still Right?
ABC Helps Companies Survive Recession
Traditional Costing versus Activity Based Costing
Conditional Resources in ABC
The Process of Activity Based Costing (ABC) simplified
Activity Based Costing (ABC)
Overhead Costing - Food Manufacturing
ABC in service companies such as airlines?
Degree of Detail in ABC
Activity Based Costing Implementation
ABC and Decision making
Time-driven ABC (TDABC)
Activity Based Management (ABM)
Calculating the Most Profitable Way of Manufacturing a Product
ABC or TOC? The Differences between Activity Based Costing and the Theory of Constraints
Recommended ABC Software
Comparison Activity Based Costing, Time-Driven-ABC and Lean Accounting
ABC Costing in Make to Order of Repetive Manufacturing
Over Recovery / Under Recovery Level
ABC in the Federal Environment
An ABC Initiative is Only as Effective as the Software That Supports It
Organizational Issues when Introducing ABC


Activity Based Costing
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