Activity Based Accounting Homework Help


Activity Based Accounting Assignment Help

The Concept of Activity Based Cost Accounting (ABC) can be easily understood. There are two major cost accounting elements are: Cost measures and performance measures. Activity-based cost accounting is a methodology that measures the cost and performance of activity resources and cost objects. It is just the definition of the concept. However, the practical application is way more arduous to grasp.

In the process of cost accounting resources are assigned to activities and activities are assigned to cost objects based on their use. The basic concept of activity Based Cost Accounting is that activities consume resources to produce an output. If we put two individuals on an activity of cost accounting estimation, then these two individuals are the resources consumed by that particular activity. Expenses should be separated and matched to the level of activity that consumes the resources. Specifically, the expenses that are needed to produce should be separated from the expenses that are incurred to produce different products or services or to serve different payers. This separation should be independent of how many units are produced or sold.

In allassignmenthelp approach fundamental concentration in on activity. Cost allocation is done on the basis of both financial and nonfinancial variables. A typical approach utilizes more indirect cost pools than does the traditional approach and uses a greater number of cost drivers as cost allocation bases.

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