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Be A Good And Effective Manager By Understanding Activity Based Costing And Activity Based Managemen

Be A Good And Effective Manager By Understanding Activity Based Costing And Activity Based Managemen


Therefore this model assigns more indirect costs (overhead) into direct costs compared to conventional costing.

Overview

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.

Course Information

Knowledge of Financial Accounting
Excel

Understand an Activity-based costing system
Know cost pools and cost drivers of activities
Distinguish between value-added and non-value added

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