Activity Based Costing
Last Updated 01/2017
English
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Finish in
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Description
This is a 29-slide PowerPoint.
Activity Based Costing (ABC) analysis is a methodology for assigning costs to those activities that truly drive these costs. It is more accurate than traditional costing methods. It is a valuable technique to know for a number of key reasons:
* ABC allows you to develop a picture of the true profitability of product lines, customer segments, distribution channels, geographies, and other market segments.
* ABC aids in a number of strategic decisions, from determining target markets to selecting the optimal product mix to making informed pricing decisions.
Specifically, ABC leads to a more accurate assignment of costs to cost objects through a process of:
* Matching the logical flow of costs through the cost system to the economics of true cost flows.
* Mapping costs from "resources" (e.g. wages paid, supplies purchased) to activities performed (e.g. units manufactured) to cost objects (e.g. products, customers, distribution channels) that drive those costs.
ABC is an invaluable tool for making strategic decisions, as it allows you to develop a picture of true profitability of product lines, customer segments, geographies, distribution channels, and other markets. This document explains a 7-phase approach to Activity Based Costing and includes examples.
* ABC allows you to develop a picture of the true profitability of product lines, customer segments, distribution channels, geographies, and other market segments.
* ABC aids in a number of strategic decisions, from determining target markets to selecting the optimal product mix to making informed pricing decisions.
Specifically, ABC leads to a more accurate assignment of costs to cost objects through a process of:
* Matching the logical flow of costs through the cost system to the economics of true cost flows.
* Mapping costs from "resources" (e.g. wages paid, supplies purchased) to activities performed (e.g. units manufactured) to cost objects (e.g. products, customers, distribution channels) that drive those costs.
ABC is an invaluable tool for making strategic decisions, as it allows you to develop a picture of true profitability of product lines, customer segments, geographies, distribution channels, and other markets. This document explains a 7-phase approach to Activity Based Costing and includes examples.
Author
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Flevy develops management training guides of the same caliber as those produced by top-tier management consulting firms, like McKinsey, Bain, Accenture, BCG, and Deloitte. In fact, our authors include ex-consultants from all these firms. Most of our materials were developed by seasoned executives and consultants with 20+ years of experience.
Activity Based Costing
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Activity Based Costing (1.4 MB)
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Frequently Asked Questions
This course is designed for employees who need to complete Activity Based Costing training
Yes. This course is designed to meet applicable federal requirements and commonly mandated state standards. Always confirm specific state or industry requirements with your local regulations.
The course takes approximately 30 minutes to complete and can be paused and resumed at any time.
No. This course does not include a certificate of completion.
Yes. You can assign this course to individuals or groups using Coggno’s LMS, or purchase multiple seats for your team.
Yes. This course can be exported for delivery in most learning management systems (SCORM compatible).
Yes. The course is fully self-paced and available 24/7.
Yes. This course includes a knowledge check to reinforce learning and verify completion.
Learners have lifetime access from the date of purchase.
Yes. A preview is available so you can review the course format and content before purchasing.
Yes. Content is reviewed and updated as regulations and best practices change.
No. This course is not included with the Prime Subscription and must be purchased separately.
Yes. Refund requests can be submitted within 30 days of purchase.
This is a 29-slide PowerPoint.
Activity Based Costing (ABC) analysis is a methodology for assigning costs to those activities that truly drive these costs. It is more accurate than traditional costing methods. It is a valuable technique to know for a number of key reasons:
* ABC allows you to develop a picture of the true profitability of product lines, customer segments, distribution channels, geographies, and other market segments.
* ABC aids in a number of strategic decisions, from determining target markets to selecting the optimal product mix to making informed pricing decisions.
Specifically, ABC leads to a more accurate assignment of costs to cost objects through a process of:
* Matching the logical flow of costs through the cost system to the economics of true cost flows.
* Mapping costs from "resources" (e.g. wages paid, supplies purchased) to activities performed (e.g. units manufactured) to cost objects (e.g. products, customers, distribution channels) that drive those costs.
ABC is an invaluable tool for making strategic decisions, as it allows you to develop a picture of true profitability of product lines, customer segments, geographies, distribution channels, and other markets. This document explains a 7-phase approach to Activity Based Costing and includes examples.