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What is the difference between traditional cost system and activity based costing?

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تم إضافة السؤال من قبل yousry sadek , Group Finance Manager , Tal Holding Co
تاريخ النشر: 2017/10/04
yousry sadek
من قبل yousry sadek , Group Finance Manager , Tal Holding Co

In the cost system cost allocation based on either traditional costing drive or active based costing drive. Under traditional costing drive calculates a single overhead rate and applies it to each job order or department. Under activity based costing drive calculates of activity rate and application of overhead cost to products based on their respective activity usage.

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