4 similarities between Activity Based Costing and traditional system of assigning overhead to product.

4 similarities between Activity Based Costing and traditional system of assigning overhead to product.



Activity based costing are method of costing in which overhead fixed cost are allocated to product basing on how activities involved in making those products consumed the fixed overhead fixed cost. Traditional costing in other hand is method of allocating overhead fixed cost to product using arbitrary bases such as machine hours or labor hours. read more

5 advantages of Activity Based Costing (ABC).

advantages of activity based costing

Activitybased costing (ABC) is a costing methodology that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each. read more

3 ways companies uses to determine transfer prices.

SUBSTANTIVE PROCEDURES FOR IDENTIFYING RELATED PARTIES - ISA 550

Transfer pricing is the setting of the price for goods and services sold between controlled or related legal entities within an enterprise. For example if the subsidiary company sells goods to the parent company the cost of those goods paid by the parent to the subsidiary is the transfer price. read more