Traditional Costing MethodThey can be grouped into larger generalised activities as it would prove costly and time consuming to have each individual activity as opposed to a general one. Creditors make decisions regarding whether to extend credit to the business. Analyzing costs can help companies make strategic, financially sound decisions. A cost object in the case of this company would be the services that it provides. For example, telephone expenses can be traced directly to the employee handling customer complaints.
Understanding Traditional Costing
Richy November 14, at 6: It works under the simple approach of assigning resources to products or services directly. Email will not be published required.
Absorption Costing vs. Activity-Based Costing
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