ABC -System Some Basics.....

====> What is ABC system?

Activity based costing means a method of assigning over head costs to processes or products that generate or consume the cost. Or......
Indirect costs such as managt & office staff salaries are sometimes difficult to assign to a praticular product produced.

====> Steps:-

----> Identify Costs:-

Identify costs are thise cost that we want to allocate.

----> Load Secondry Cost Pool:-

It provied service to other parts of the company.

----> Measure Activity Drivers:-

Use data collection system to collect information about the activity drivers.

----> Formulate Reports:-

Converts the result of ABC system into reports for managment Consumption.

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