Activity-based costing (ABC) is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each. Therefore this model assigns more indirect costs (overhead) into direct costs compared to conventional costing
Activity-based management (ABM) is a method of identifying and evaluating activities that a business performs, using activity-based costing to carry out a value chain analysis or a re-engineering initiative to improve strategic and operational decisions in an organization.
What Will I Get ?
- Be able to understand activity based costing
- Appreciate the management of activities is the new management approach
- Understand value added and non value added activities
- Learn about cost pools
- Learn about cost drivers
- be able to develop activity based overhead rates
- Knowledge oh Financial Accounting
- Knowledge of Excel
- Knowledge of Job Costing