2024 Is Activity-Based Costing the Right Tool for Your Organization?

Overview

This session provides a refresher regarding the fundamentals of activity-based costing (ABC). We will examine theoretical concepts before exploring practical possibilities for implementing ABC. A major focus of the course will be factors to consider when determining whether this managerial accounting tool is an appropriate resource for an organization.

Prerequisites

Basic working knowledge of financial statements and business processes

Objectives

• Revisit the fundamental underpinnings of ABC
• Understand what types of business entities may benefit from ABC
• Appreciate potential benefits of ABC
• Recognize limitations of ABC

Highlights

• ABC versus traditional costing
• First-stage allocation
• Determining predetermined overhead rates
• Second-stage allocation
• Activity-based reporting

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