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abc

This topic has 3 replies, 2 voices, and was last updated 10 years ago by John Moffat.

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July 31, 2015 at 4:30 am #263120
sasha
Member
- Topics: 99
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for A,
direct labours/unit = 8
units= 1200
labour hours =10000
for B
direct labours/unit 5
units= 1300
labour hours = 100000
sir, here why should we bother to calculate labour hours gain ? cant we use given labour hours to calculate OAR?
2. why we use labour hours instead of number of units to calculate OAR when given more than one products?
July 31, 2015 at 8:33 am #263131
John Moffat
Keymaster
- Topics: 57
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I am sorry but without seeing the full question to which you are referring, I cannot really help.
July 31, 2015 at 1:01 pm #263176
sasha
Member
- Topics: 99
- Replies: 141
sorry sir.. I posted half question.. ny, I got it later 🙂
sir, how absorbtion costing and ABC can be used in service sectors? arent they suppose to be used only in manufacturing?
July 31, 2015 at 5:19 pm #263341
John Moffat
Keymaster
- Topics: 57
- Replies: 54733
ABC can be used in service sectors, but it is more difficult in practice to determine the cost centres and the cost drivers than it is in manufacturing businesses.
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