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ABC - created from Mind Map
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calculate
1. identify appropriate cost drives
2. calculate costs per driver & per unit
Product (unit level)
Batch level
Product sustaining
Facility sustaining
Production volume
Machine power
Labour
Materials
No of batches
Setup costs
Quality control
No and diversity of products
Product management (e.g. marketing, design)
The fact that the business exists
Rent & rates
Building maintenance
Comparison to traditional methods
Traditional methods
Absorption costing
Most overhead costs were assumed to be incurred at product level
Absorbing overheads based on production volume was very relevant
ABC
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- Description
- Professional F5 Note on ABC - created from Mind Map, created by Paul Barnes on 14/10/2014.
- Created by
- Paul Barnes · Oct 2014
- Updated
- Feb 19, 2016
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- 12
- History
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- Created by Paul Barnes · Oct 14, 2014
- Copied to Note by Paul Barnes · Oct 14, 2014
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