1. What is Difference Between Traditional & Activity Based Costing?
2. What is a Cost Object?
3. How long has Activity Based Costing been around?

1. What is Difference Between Traditional & 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 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 a Cost?

Cost Object is any reason for which you want to collect costs: products/services/customers, acquisition savings, capacity, channels, shared services/transfer pricing, etc.

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3. How Long has Activity Based Costing Been Around?

Jim Brimson started Cost Management group at CAM-I in mid 1980s. This consortium of companies created Activity Based Costing. It is now on CPA and CMA exams and in most books on cost accounting. After 20 years of refinement, it is considered most accurate way to do cost accounting today.

Email below or call John Antos, Maurice Greaver, or Steve Peacock at 972-980-7407 to find out how to better cost your products/services, call centers, processes, and channels of distribution. 

Find Out How We Can Help You Obtain More Accurate Costing

Have Consultant contact me Name Title Company Address E-mail Phone Problem or Challenge Phone: 972.980.7407 email: Contact us Value Creation Group, Inc. 7820 Scotia Dr. #2000 Dallas, TX 75248