- What is Difference Between Traditional Cost &
Activity Based Costing?
- What is Difference Between
Traditional Cost & Process Costing?
- What is Traditional Cost Analysis?
1. What is Difference Between Traditional
Cost Analysis & Activity Based Costing?
Traditional Costing
tends to spread overhead based on simple drivers like sales dollars, units,
etc. This often results in high volume products/services being over costed
and low volume products and services being under costed.
Activity Based Costing
calculate costs of activities and then determines how much of each activity
your products/services/customers use. This has been shown over 20 years to be
more accurate than traditional costing.. . .
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2.What is Difference Between
Traditional Cost & Process Analysis?
Traditional Costing tends to spread
overhead based on simple drivers like sales dollars, units, etc. This often
results in high volume products/services being over costed and low volume
products and services being under costed
Process Analysis starts by defining the
cross functional processes of an organization
- Sales and Marketing,
- Research and Develop products/services
- Hire and Train employees
- Procure, Receive, and Pay for materials and supplies
- Provide Financial Information
- Provide Information Technology
- .
- .
- .
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Performance analysis is done at the process level for cost, cycle time o
processes and quality of processes.
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3. What is Traditional Cost Analysis?
Traditional cost analysis tends to focus on
- .department costs
- actual costs versus budget
- actual costs versus forecast
- cost trends
Email below or call John Antos or Steve
Peacock at 972-980-7407 to find out how to better analyze your products/services,
customer, call centers, processes, and channels of distribution costs.
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Obtain More Accurate Costing |
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Phone: 972.980.7407 email: Contact us
Value Creation Group, Inc.
7820 Scotia Dr. #2000
Dallas, TX 75248
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