absorption costing vs activity based costing pdf

By | 15.08.2017

Traditional Costing Method

They 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.

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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 Email will not be published required.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

Ronald konzani May 15, at 2: Subscribe If you enjoyed this article, subscribe to receive more just like it. Rule Breakers High-growth stocks.

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