Activity Based Accounting Assignment Help
November 24, 2023 ⚊ 1 Min read ⚊ Views 36 ⚊ BUSINESS
Resources are allocated to activities and activities are allocated to cost objects according to how they are used in the cost accounting process. Activity Based Cost Accounting’s fundamental tenet is that resources are used by activities in order to create an outcome. If we assign two people to the task of cost accounting estimation, then those two people are the resources that are used for that specific task. Costs have to be allocated according to the degree of activity that uses up the resources. In particular, costs associated with production should be kept apart from costs spent in the process of producing various goods or services or catering to various payers. It should not matter how many units are made or sold—this separation should still occur.
