What is ABC 2008

What is ABC 2008 - Introduction Cost Driver According to...

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Introduction Cost Driver According to the Business Dictionary , activity based costing (which states that products consume activities and activities consume resources ) which causes a change in the cost of an activity. It states that an activity can have more than one cost driver attached to it. For example, a production activity may have the following associated cost-drivers: a machine , machine operator(s), floor space occupied, power consumed, and the quantity of waste and/or rejected output . 1 Cost Object However, according to Eldenburg and Wolcott’s Cost Management , a cost object is a thing or activity for which we measure costs (39). It also states that cost objects include things such as individual products, product lines, projects, customers, departments and even the entire company. Managers identify one or more cost objects based on the relevant information they need for a particular decision, budgeting and planning (39). This is calculated by adding: Direct Cost – Material and Labor, to Overhead or Machine Cost (if given) in order to obtain the Total Cost Object . What is Traditional Cost Accounting According to Eldenberg and Wolcott, traditional costing system assign manufacturing production cost to individual products in inventory and cost of goods 1 BusinessDictionary.com
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What is ABC 2008 - Introduction Cost Driver According to...

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