Activity Based Costing
About Activity Based Costing
Activity-based
costing (ABC) is mostly used in the manufacturing industry since it
enhances the reliability of cost data, hence producing nearly true costs
and better classifying the costs incurred by the company during its
production process.
Why is Activity Based Costing important?
Advantages of Activity-Based Costing
• Provides realistic costs of manufacturing for specific products
• Allocates manufacturing overhead more accurately to products and processes that use the activity
• Identifies inefficient processes and targets improvements
• Determines product profit margins more precisely
• Discovers which processes have unnecessary and wasted costs
• Offers better understanding and justification of costs in manufacturing overhead
Who should take the Activity Based Costing Exam?
• Finance or Costing or Accounting professionals
• Business owners
• Entrepreneurs
• Innovators
• Anyone who wants to assess their Costing skills
• Finance or Costing or Accounting managers and senior executives
• Finance or Costing or Accounting consultants
• Anyone interested in Activity Based Costing
• Anyone who wants to learn Activity Based Costing
• Students
Activity Based Costing Certification Course Outline
1. Introduction to Cost and Management Accounting
2. Material Cost
3. Labour Cost
4. Direct Expenses and Overheads
5. Activity Based Costing