Transcription of Volume vs. Activity- -Based Based - csus.edu
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Volume vs. Activity- -Based Based - csus.edu
activity -Based Costs are Treated Under ABCABC differs from traditional cost accounting in three differs from traditional cost accounting in three costingproduct costing ABC assigns both types of costs to Costs are Treated Under ABCABC differs from traditional cost accounting in three differs from traditional cost accounting in three costingproduct costing ABC does not assign all manufacturing costs to Costs are Treated Under ABCABC differs from traditional cost accounting in three differs from traditional cost accounting in three BasedCostingmplexDepartmentalOverheadRat esl of coPlantwideOverheadLevelRateNumber of cost poolsp ABC uses more cost Costs are Treated Under ABCABC differs from traditional cost accounting in three differs from traditional cost accounting in three ABC cost pool has itsown unique measure of cost systems usually relyTraditional cost systems usually relyon Volume measures such as direct laborhours and/or machine hours to allocatehours and/or machine hours to allocateall overhead costs to products.
Activity-Based Costing 1 Volume vs. Activity--Based Based 2. How Costs are Treated Under ABC ABC differs from traditional cost accounting in three ways. Manufacturing costs Nonmanufacturing costs Traditional ABC product costing product costing ABC assigns both types of costs to products. 3
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