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ABC

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › ABC

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
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  • March 2, 2022 at 10:59 am #649637
    Amrit123
    Participant
    • Topics: 26
    • Replies: 23
    • ☆

    sir here in kaplan study text, in ABC costing
    it is written that for long term variable overhead costs, the cost driver will be the volume of activity .
    i am confused here because i think ABC is alternative to traditional volume-based costing model.
    I am hoping some help here

    March 2, 2022 at 6:48 pm #649676
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54684
    • ☆☆☆☆☆

    ABC is primarily concerned with absorbing the fixed overheads.

    Variable overheads will be most like charged on the basis of the volume of activity as normal.

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