Transcription of Activity Based Costing - icmab.org.bd
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Activity Based Costing - icmab.org.bd
BCAS - 14 BANGLADESHCOST ACCOUNTINGSTANDARDS Activity BasedCostingBCAS 14: Activity Based Costing (ABC) IntroductionIn this ever changing dynamic business environment, managers or decision makers have to identify different ways to focus on business strategy. Cost leadership is one of the important generic startegies that a company can follow to generate the value for the stakeholders. ABC is believed to be the most innovative tool developed in last century in the field of cost and management accounting focusing on product Costing and management strategy. During the late 1980s, Kaplan & Bruns had defined this term in their book.
14.7.1 Activity based costing is ordinarily used as a supplement to, rather than as a replacement for, the organization's usual costing method. 14.7.2 Non manufacturing as well as manufacturing costs may be assigned to cost objects.
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