Activity Based Costing Flashcards
1
Q
What is Activity Based Costing
A
a costing system that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each.
2
Q
Main type of Costing Methods
A
Absorption costing
Marginal costing
Activity based costing
Standard costing
3
Q
What is Cost drivers
A
Activities which causes costs to be incurred
4
Q
What is Cost Pools
A
cost pools are groups of overhead costs that are incurred by the same activity
