ABC Costing

ABC costing is more beneficial in the long run because: Increased accuracy in cost calculation Better decision-making based on cost information Improved cost management and cost reduction Effective resource allocation for improved profitability.

shivaji hari

CA Inter

★ 3K+

12-Feb-23 16:16

Thank you Shivaji...

Thread Starter

Aswath Natarajan

CA Final

★ 2K+

12-Feb-23 16:25

Indirect Costs are difficult to control in the long run. Traditional costing systems just attempts to allocate overhead based on absorption rate. However ABC Costing attempts to allocate product costs on a realistic basis (based on activities). This consumes time but in the long run, inorder to cover up costs, ABC system only helps.

Rishivardhan Alagappan

Qualified CA

★ 2K+

12-Feb-23 17:26