what is Activity Based costing

Posted on 10-05-2016        By ADMIN

what is Activity Based costing

Activity Based costing short view

             InTraditional Method we split the Over Head incurred in production, based onmachine hours which are not acceptable for many reasons.

             In ABCmethod Over Head are splited according to the related activity, for each typeof Over Head. Overhead are apportioned among various Production cost centers onthe basis of Activity cost drivers.

Comment :