What is ABC Costing and how it is different from traditional costing method?

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Next Question:
What is the traditional method used in cost accounting?
Posted by:
Mohammed El Tahir Mohammed Yousif
16-July-2017

Cost Accounting

Question ajoutée par Saad Kapadia FCA - CIA - CFE - CISA - CRMA-FMVA , Head Of Internal Audit , Cenomi Centers
Date de publication: 2015/04/09

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Mirza Babar Baig

par Mirza Babar Baig , Accounting Manager , OMNISPIRE Education

Activity based costing (ABC) assigns manufacturing overhead costs to products in a more logical manner than the traditional approach of simply allocating costs on the basis of machine hours. Activity based costing first assigns costs to the activities that are the real cause of the overhead.

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