Difference between activity-based cost and activity cost management. Can you say that the activity-based cost system...
Difference between activity-based cost and activity cost
management.
Can you say that the activity-based cost system is a mechanism that
refines cost systems?
It argues in terms of the advantages of using the activity-based
cost system (ABC costing) in terms of the allocation of indirect
costs to the products or services and the difference between the
activity-based cost (activity based costing) and activity cost
management (activity based management).
Homework Answers
- Activity based costing is a method of costing that assigns the indirect costs of the organisation to the products/services more effectively using the cost drivers. whereas activity cost management is a process of cost management.
- Yes , It is true that activity based costing is a mechanism that refines cost systems as it derives the overheads costs and allocate them appropriately.
Activity based costing or ABC costing generally use cost drivers as a source to differentiate the overheads and allocate them appropriately.
Add Answer to:
Difference between activity-based cost and activity cost
management.
Can you say that the activity-based cost system...
Groleau Corporation has an activity-based costing system with three activity cost pools: Processing, Setting Up, and...
Groleau Corporation has an activity-based costing system with three activity cost pools: Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the...
In the following scenarios, would you recommend that management use a plantwide allocation system or activity...
In the following scenarios, would you recommend that management use a plantwide allocation system or activity based costing? - A. B. In bidding for jobs, managers lost bids they expected to win, and won bids they expected to lose. - A. B. The calculated cost of the products are very similar under different methods of allocating overhead. - A. B....
question 20 an ABC system is one building block of activity - based management (ABM) ....
question 20 an ABC system is one building block of activity - based management (ABM) . the second building block is 1- the ability for managers to understand that the demand for output is central to profitability 2- knowing the limitations of allocating indirect costs 3-automating the costing system 4-that senior management support is crucial 5- understanding the components of indirect cost pools
Activity-based job-costing system. Henriksen AS manufactures and sells packaging machines. It recently used an activity-based approach...
Activity-based job-costing system. Henriksen AS manufactures and sells packaging machines. It recently used an activity-based approach to refine the job-costing system at its Vejle plant. The resulting job-costing system has one direct-cost category (direct materials) and four indirect manufacturing cost pools. These four indirect- cost pools and their allocation bases were chosen by a team of product designers, manufacturing personnel and marketing personnel: Cost-allocation base Indirect manufacturing cost pool Budgeted cost- allocation rate 1. Materials handling 2. Machining 3. Assembly...
Deemer Corporation has an activity based costing system with three activity cost pools Processing Supervising and...
Deemer Corporation has an activity based costing system with three activity cost pools Processing Supervising and Other in the first stage allocations, costs in the two overhead accounts, equipment expense and Indirect laborare allocated to the three activity cost pools based on resource consumption Data used in the first stage allocations follow Overhead costs: Equipment expense Indirect labor $99.00 $12,780 Distribution of Resource Consumption Across Activity Cost Pools Activity Cost Pools Processing Supervising Equipment expense Indirect labor Processing costs are...
Activity-based costing, or ABC, is a costing method that managers can use for internal cost reporting...
Activity-based costing, or ABC, is a costing method that managers can use for internal cost reporting and decision making. While ABC isn't allowed for external financial reporting, companies may find it useful to enact an ABC system to more effectively analyze cost data. ABC systems excel at being able to assign costs to products that are manufactured and supported by many different types of activities. Question is, would this be very expensive? And, is there a lot of training involved?
Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other....
Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other...
Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other....
Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. Th company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to t activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine-h (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other...
Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other....
Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other...
Which of the following statements is correct about the differences between a volume-based cost system and...
Which of the following statements is correct about the differences between a volume-based cost system and an ABC system? O The only difference is how the methods assign indirect costs to products. O The only difference is how the methods assign direct costs to products O The methods assign both direct and indirect costs differently to products O There is no difference in how the methods assign direct or indirect costs to products.
Groleau Corporation has an activity-based costing system with three activity cost pools: Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the...
Activity-based job-costing system. Henriksen AS manufactures and sells packaging machines. It recently used an activity-based approach to refine the job-costing system at its Vejle plant. The resulting job-costing system has one direct-cost category (direct materials) and four indirect manufacturing cost pools. These four indirect- cost pools and their allocation bases were chosen by a team of product designers, manufacturing personnel and marketing personnel: Cost-allocation base Indirect manufacturing cost pool Budgeted cost- allocation rate 1. Materials handling 2. Machining 3. Assembly...
Deemer Corporation has an activity based costing system with three activity cost pools Processing Supervising and Other in the first stage allocations, costs in the two overhead accounts, equipment expense and Indirect laborare allocated to the three activity cost pools based on resource consumption Data used in the first stage allocations follow Overhead costs: Equipment expense Indirect labor $99.00 $12,780 Distribution of Resource Consumption Across Activity Cost Pools Activity Cost Pools Processing Supervising Equipment expense Indirect labor Processing costs are...
Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. Th company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to t activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine-h (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other...
Which of the following statements is correct about the differences between a volume-based cost system and an ABC system? O The only difference is how the methods assign indirect costs to products. O The only difference is how the methods assign direct costs to products O The methods assign both direct and indirect costs differently to products O There is no difference in how the methods assign direct or indirect costs to products.
Most questions answered within 3 hours.
-
A man is dragging a box of mass "m" by using a rope which rests
on...
asked 4 minutes ago -
Liquid octane
(CH3(CH2)6CH3) will
react with gaseous oxygen (O2) to produce gaseous carbon
dioxide (CO2) and...
asked 5 minutes ago -
For the reaction N2(g) +
O2(g) --> 2NO(g), if the initial
concentration of NO was 0.00M...
asked 8 minutes ago -
On a recent quiz, the class mean was 75 with a standard
deviation of 2.2. Calculate...
asked 24 minutes ago -
Discuss the Coefficient of Restitution in an elastic collision
compared to the Coefficient of Restitution in...
asked 28 minutes ago -
Pretend that you are
the audit manager on an annual financial statement audit engagement
for a...
asked 37 minutes ago -
A certain lens focuses light from an object 1.65 m away as an
image 41.8 cm...
asked 37 minutes ago -
Which metal has a resistivity that is within the range or
closest to 4.2X10^-6 to 4.7X10^-6...
asked 43 minutes ago -
5.) Suppose a researcher collected data on the mean height of
tomato plants grown in organic...
asked 55 minutes ago -
(b) A medical statistician wants to estimate the average weight
loss of people who are on...
asked 1 hour ago -
In scala,
Can you explain what is the difference between them, and why the
first one...
asked 1 hour ago -
True (T) or False (F) Questions
In a queuing system, if the system’s utilization is 100%,...
asked 1 hour ago