• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

New! Lectures for ACCA AAA September 2022 Exams are now available >>

New! BPP Books for ACCA September 2022 Exams are now available, get your discount code >>

Activity based costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Activity based costing

  • This topic has 1 reply, 2 voices, and was last updated 10 months ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • September 3, 2021 at 10:11 pm #634208
    deekshabee
    • Topics: 24
    • Replies: 20
    • ☆

    hello

    I have a doubt relating to variable o/h costs.

    First of all, this is what I have understood about variable production and variable O/H costs:
    1. Variable production costs
    a. Short-term variable production costs – cost driver based on the volume of activity
    b. Long term variable production costs – ABC based cost drivers
    2. variable O/H costs
    a. Short-term variable O/H costs – ABC-based cost drivers
    b. Long term variable O/H costs – cost driver based on the volume of activity

    Sir, Now here are my questions to you:
    Q1 why don’t we use cost drivers based on the volume of activity for Long term variable production costs?
    Q2 why are long-term variable O/H costs are not allocated using ABC-based cost drivers?

    Thankyou!

    September 4, 2021 at 10:48 am #634253
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49603
    • ☆☆☆☆☆

    We do not distinguish between the treatment of long term as against short term variable costs.

    ABC is primarily for absorbing fixed overheads as opposed to traditional absorption costing (as explained in my free lectures).

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • John Moffat on Discounted Cash Flow Further Aspects, Lease versus Buy – ACCA Financial Management (FM)
  • ben920331 on Discounted Cash Flow Further Aspects, Lease versus Buy – ACCA Financial Management (FM)
  • John Moffat on The Statement of Financial Position and Income Statement (part d)
  • Viktoriia.Yanchuk on The Statement of Financial Position and Income Statement (part d)
  • John Moffat on The management of receivables – Simple settlement discount – ACCA Financial Management (FM)

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy