Activity-based costing in a nutshell
ID:CVABC
Video Overview
In this tutorial we will look at the steps involved in Activity-based costing, a modern approach to overhead allocation that has emerged over the last few decades. ABC divides the total overheads into groups based on the activity that gives rise to the cost. Each group has its own overhead rate that is used to allocate overheads between products. In this way a more accurate cost of products is calculated.
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