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Dear John,
Could you please tell me where I can get the study materials for ABB. Its a new topic and I could not find it anywere!
Will really apreciate your help. Thank you in advance!Its not actually a new topic – knowledge of it has always been in the syllabus (but has never been asked). You can now be asked to do numbers, but if numbers are asked they are likely to be pretty simple.
Ir is the application of the idea of Activity Based Costing to the process of budgeting, and as such has particular relevance to budgeting for fixed overheads.
At the planning stage, attempts are made to identify which activities drive various overheads. Costs are spread over these cost drivers using whatever basis appears to be appropriate in the circumstances.So, given that presumably you are happy with Activity Based Costing (which is often asked, although is less likely this time), all it involves is preparing the budget in the same way as you do Activity Based Costing, but obviously using budgeted figures for the overheads and for the cost drivers.
Dear John,
Thank you very much for your quick reply. It is very usefull.
Regards, Lilly.
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There is a question on ABB in the BPP revision kit ,Mock 2 question 2 .It seems to be the only question on ABB .However i dont seem to understand how they got the 0.4 for product Z.
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