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mechanics of ABC system consists of :

-overview

-first-stage allocation

-the other activity cost pool

-Computation of activity rates

-Second-stage allocations of costs to cost objects

-Product and customer margins---activity view

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Q: What is mechanics of activity based costing?
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Related questions

What is the main difference between activity based costing and attribute based costing?

activity based costing does not promote TQM(total quality management) and continuous improvement but attribute based costing promotes the both.


Problem relating to the implementation of activity based costing and activity based management system?

Answering "Problem relating to the implementation of activity based costing and activity based management system


Activity-based costing is a means of more accurately accounting for direct labor cost?

False. Activity-based costing is used to allocate indirect cost into direct costs.Regardng direct cost, traditional costing is as appropriate as activity-based costing.


Company using absorption costing?

It is old costing technique & it is replaced by activity based costing


How does activity based costing differ from traditional based costing?

Activity based costing has primary difference of allocation of overheads which are based on activities performed by any department while in traditional costing system overheads are allocated on predetermined rate which may be not very accurate.


What is the differences between activity-based costing and traditional product costs?

In traditional costing, overheads are allocated using blanket rate while in activity based costing overheads are allocated by the activities performed.


What activities does activity based management encompass?

ABM strategically incorporates activity analysis, activity-based costing (ABC), activity-based budgeting, life cycle and target costing, process value analysis, and value-chain analysis.


Does Toyota use Activity based costing?

yes


How would you describe activity based costing?

Activity-based costing is a form of cost refinement, designed to obtain greater accuracy than traditional allocations in cost assignments for product costing and decision-making purposes.


Why activity based costing?

Activity based costing allocate the overhead expenses based on activities performed and that's why it is an accurate way to allocate overhead expenses while in absorption costing, overheads are allocated based on some ratios or predetermined rate which is not accurate method of allocation of cost.


How is activity based costing better than traditional cost assignment systems?

Activity-based costing tries to take the nonuniformity of resource consumption across products into account in the assignment of costs.


How can activity-based costing be used in non-manufacturing industries?

Yes, you can.