Activity Based Costing
Activity Based Costing
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Activity Based Costing & Cost Accounting Management SiteMap
Activity Based Costing System:
  • can be used for cost accounting management
  • can be a basis for a standard costing system
  • is a useful tool for accounting analysis
  • includes both cost and management accounting
  • refines costing of indirect costs to combine with direct costs for product, customer, and service costing
  • helps with cost control management
  • is considered superior to traditional costing
  • can comply with cost accounting standards
  • can be used to cost inventory
  • can help with inventory management
  • is accepted as a proper way for costing costs
  • can work in conjunction with lean accounting
  • serves as a way for costing overhead
  • uses cost drivers for activity based costing
  • activity based costing approach focuses on activities not department expenses
  • activity based costing can be used in service, manufacturing, government, nonprofit and even healthcare
  • history of activity based costing dates back to the mid-1980s and CAM-I
  • first step in activity based costing is to define your activities
  • is a tool to aid decision making

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Phone: 972.980.7407 email: assistyou@valuecreationgroup.com
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CAM-I
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