Overview of Activity Based Costing - Activity Based Costing, Cost Management Video Lecture | Cost Management - B Com

which after 18 is about we're trying to
redefining the method we used in chapter
17 is the response about how to assign a
cause for factory overhead
this was a traditional minute in the
beginning started forming numerous 3040
years ago this was the original starting
with how we allocate the cost for our
table later on in the eighties people
start to refine this amendment by using
the more precise way activity-based
costing so we're still continuing on
this topic which is going to be perfect
even better
more specific allocated these
on occasion base
so all together we're still working on
how to assign
and using my side
ABCs
to the base costing the second bullet
point here after we learned the general
idea what ADC is about take a look at
her managers use this information and
then add at other topics like JIT for
the quality management how do these
different strategies combine together
health management to set the price based
on a combination of cost okay so this
chapter we learned in work besides way
how to do the cost in class products
these are different types of activities
different types of drivers and we added
the idea that there are the inventory
costs by just entire system and then how
do we make sure that quality of the
products are proper that are the cost we
need to invest
later on not to get to defective
violence that just should to customers
defective items
because that helps business at the
better control ensuring that each stage
it have products and working process and
entering
at a certain level
what is this costing method and this is
a more accurate even while we're over to
know this number contains direct
materials direct labor record a lot
easier to understand the materials
governmental purchases directly
capturing them to you you know Rick
that's how much in career direct labor
inside a contract within believes you
know exactly what is the salary your
pain
for your jobs but indirect cost year
after
hiatus and costs to donate cost
associations are pretty taxes all of
these again goes back to not going to
actually own your ass
to assign these costs are nearly
everyone
only using one for all products here at
the base would be separating these
manufacturing overhead cost into
specific types of activities so for
example if going back to the Excel DVD
case may be separating set-up cost that
the DVD burner pops separating the
applause Brian cases
these are different stages of the
one captures that
it cost in the reduce step for this
we call these different activities
a business that reduces grounds may have
waxing set
and they have molding stuff and they
have a step
different activities and one finding a
driver for these activities which was
the manufacturer that the cost
set up us more job order to more
even a bringing the more jugglers you
have
question my customers
so really the driver is how long you
have been using the machines these
factors are the cost of DVD burning
station last ATT's assembly after the
DVDs are ready
but then the nickname
so the more inserts you need to put in
each case the more cost occurs but if
there's a specializing many requests
that means seven
as opposed to the regular ones just
needs one insert and of course a
specialized per batch order and will
encourage more case assembly cost than
the regular is 50 bees okay so we wanted
to be more precise in terms of how he
assigned across Connecticut overhead by
spreading out the different types of
activities finding their particular to
drive order to decide the costume so if
this product needs more cement across
products probably West for the other
type this
many hours to produce a specialized DVD
these less positive regular taxes
to be more specific separate different
activity and a - ancillary driver to
assign across to the activities
so other examples here to give you more
references should be in class usually
when you purchase something either
Amazon eBay
how heavy darkness so this will be the
driver of the costing career shilling
inspection cost the number of times and
especially present each season in her
business more times it occurs more cost
for inspection but we need to hire
experts to help you inspector
the more time the more cost incurred
there are examples where these services
work
- the plane follows
your service causing hurt so we're
trying to find it it's right there that
leads to the accumulation of the cost
and used that as a base to the side
prostitute
and what is here is doing here
and because direct materials direct
labor are easier to trace which is
happening live and in factory overhead
we'll be determining as to make a cost
for each activity
you see honesty