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Over Recovery / Under Recovery Level

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Activity Based Costing
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4
Riaan, SA

Over Recovery / Under Recovery Level

I want to know: Do you calculate an over/under recovery for each activity or do you calculate one singe over/under recovery for the company?
 
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4
Hennie Stander
Accountant, South Africa
 

Over Recovery / Under Recovery for Significant Activities

I would suggest that you look at the variance on each activity and identify the ones that are significant to your business as some might need further analysis.
By looking at a single variance for the company could give you a scewed figure as positives and negatives could cancel each other out and hide areas that might need attention.

Further you could look at the total figure per department if this is applicable to your company.

 

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

Do you know a lot about Activity Based Costing? Become our SIG Leader

Knowledge Center

Activity Based Costing
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