====> What is ABC system?
Activity based costing means a method of assigning over head costs to processes or products that generate or consume the cost. Or......
Indirect costs such as managt & office staff salaries are sometimes difficult to assign to a praticular product produced.
====> Steps:-
----> Identify Costs:-
Identify costs are thise cost that we want to allocate.
----> Load Secondry Cost Pool:-
It provied service to other parts of the company.
----> Measure Activity Drivers:-
Use data collection system to collect information about the activity drivers.
----> Formulate Reports:-
Converts the result of ABC system into reports for managment Consumption.
👇👇👇👇👇👇👇👇👇👇👇👇👇👇👇
Our Next Blog Is About.
---------------Marginal Cost------------
Follow Me------ 