ACCY%20304%20Lab-2-24-11

ACCY%20304%20Lab-2-24-11 - Activity Based Costing Cost...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCY 304 Lab ACCY 304 Lab February 24
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Agenda Agenda Reminder: Guest speaker next  Thursday, March 3 Cost allocation review A bit on causal loop digrams ICES forms
Background image of page 2
Activity Based Costing Activity Based Costing Normal costing (which we discussed  in 302 lab) uses predetermined rate to  allocate overhead costs (for example,  direct labor hours, machine hours) ABC uses multiple rates based on  cause and effect relationships
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Activity Based Costing
Background image of page 4
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Activity Based Costing Cost driver: A factor that causes or drives an activitys costs Cost pools: Groups of individual costs ABC Steps ABC Steps 1. Identify activities that cost money 2. Identify cost drivers for each activity 3. Compute a cost rate for each cost driver 4. Assign costs by multiplying the cost driver rate times volume Lets work on the cost allocation problem....
View Full Document

Page1 / 6

ACCY%20304%20Lab-2-24-11 - Activity Based Costing Cost...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online