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Activity-Based Costing is the set of methods, which provides accurate decision making for the costing of products and services in an organization. Today, these methods are used by different entrepreneurs to create a sought-after business. Moreover, it also has become a major subject of study for every academic student to understand its valuable concepts. But there can be some issues faced by students while preparing this subject and they have to seek help for their homework, coursework, essay and thesis writing, and for the Activity-Based Costing assignment. There can be various reasons for this.
Whatever be the problem but, in order to get a high score in this subject, one should have an expert who can give the proper guidance and possible help regarding the Activity-Based Costing assignment. But now you don’t need to waste your time anymore. We are providing Activity-Based Costing help for every student around the world. Put your all pressure directly on our team of Costing experts to get your desired scores within the guidelines and deadlines given by you.
To run any organization successfully and smoothly. The company needs to perform various activities such as purchasing of raw material, installation of machinery, production of goods, packing, selling, and advertisement. It identifies the activities and assigns the indirect cost to the products.
The ABC method helps to recognize the relationship between cost, activities, and products.
This method is mainly used in manufacturing industries as it helps to enhance the reliability of the cost data.
It is used as a tool to understand product and customer costs. It also helps in strategic decision making such as pricing, outsourcing, and identification. If the cost is not classified correctly, then this method is not useful.
The activity-based costing method provides more accurate results in cost determination.
Various steps involved in the Activity-based costing method
Step 1 Determining the cost of the objects (such as A, B, C).
Step 2 Identification of the direct cost (such as direct material, labor, expenses).
Step 3 Finalize the base for cost allocation which uses for overhead costs.
Step 4 Determining the overhead cost which is related to the selected overhead base.
Step 5 Calculate the per-unit cost.
Step 6 Compute the overhead costs for the allocation of the product.
Step 7 Lastly calculate the cost of the products.
Our Activity Based Costing Essay will make you aware of areas where the activity-based costing methods can use. It can be used in stiff competition, customer diversity, product, and service diversity as well. If you want to make your Activity-based costing assignment more effective, then our experts will ensure your best Activity Based Costing Assignment Help.
Importance of Activity-Based Costing method
Better allocation of resources:
With the help of the ABC method, the manufacturer can use its resources efficiently.
Improve business operations:
The ABC method used by industries can help them to improve their business operations.
Helps in better decision making:
This method also helps the manager to take various decisions for company betterment.
Accuracy and reliability of cost determination:
This method helps the manager to bring complete accuracy and reliability to calculate the cost of the product.
Main Purpose of activity-based costing
Measuring based on operation offers a more reliable way of measuring the product / service, which results in more accurate price decisions. This improves awareness of overheads and cost drivers; and improves the exposure of costly and non-value adding operations, helping administrators to minimize or remove them.
Detailed Information About The Topic
As above discussed the importance of the ABC approach. There are a few other importance of the ABC method which is as follows.
This method helps to identify and remove those goods and services that are not profitable for the growth and development of the organization.
It helps the top management to take timely decisions for the betterment of the industry.
The ABC method also helps to identify the available resources in a better way.
The ABC method divides the cost into three main costs such as fixed cost, the variable cost, and the overhead cost that will help in better understanding.
Activity-Based Costing Assignment Sample and Student’s Feedback
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Topics that we cover in our Activity-Based Costing Assignment help online
As we have told you in the above paragraphs that we have a team of experts who have immense knowledge of advanced Costing methods, they are able to provide valuable information about each and every major topic covered in this subject. But some of the common topics are mentioned below:
ABC would be of little use if the overhead rates are mainly attributable to quantity or if the overhead constitutes a low percentage of the total expense. Even the operating expenses can not be assigned to different operations. It could be impractical to pick both the tasks and expense drivers.
Some limitations should keep in mind while making Activity Based Costing Assignment mentioned as following:
The activity-based costing method is not easy to install as it incurs a high cost.
Working with the ABC method can be time-consuming due to its complicated and lengthy set of entities.
The ABC method will not be valid if not appropriately classified.
This method is not useful for the organization where the costs do not vary. It is not suitable for a small business organization.
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