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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Activity Based Costing
Dear Sir,
In ABC costing, What is recovery rates in each cost pool?
Please sir, give me the answer with detailed explanation.
I assume that you have watched the free lecture on ABC (I obviously cannot type out the whole lecture here).
However for each cost pool we decide what the cost driver is and then calculate the overhead per unit of cost driver (for example, the cost per set-up; or the cost per hour of machine time etc..). These are the recovery rates, although you do not ever need to use that expression in the exam.
Thanks so very much for your nice explanation.
You are welcome 🙂