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The steps in the implementation of a system of costs per activity are:
The concept of cost object is a useful concept to identify and track costs.
Examples of cost objects are :
Activity-based costing is more refined approach to costing products and services than the traditional costing method. It involves the following steps: Identification of activities involved in the production process; Classification of each activity according to the cost hierarchy (i.e. into unit-level, batch-level, product level and facility level); Identification and accumulation of total costs of each activity; Identification of the most appropriate cost driver for each activity; Calculation of total units of the cost driver relevant to each activity; Calculation of the activity rate i.e. the cost of each activity per unit of its relevant cost driver; Application of the cost of each activity to products based on its activity usage by the product.
agreed with mr. vaiyapuri.............
Agree with expert ansewrs above
I fully agree and endorse mr. Vaiyapuri's wonderful & insightful submission.
Thanx for the invitation
no idea coz i am not in the admin job.