Concept explainers
Activity Based Costing:
The Activity based costing is a modern technique of allocation of
The products are allocated the activity cost on the basis of cost drivers consumed by it for its production and activity rates of respective activity.
Requirement1:
The Pre-determined OH rate for the allocation based on Machine hours.
Requirement2:
The pre-determined activity rate for various activities under ABC.
Requirement3:
The allocation of indirect cost among product using Plant-wide overheads rate.
Requirement4:
The allocation of indirect cost among product using Activity based costing.
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