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Activity based costing which Q 1,2,3,4?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Activity based costing which Q 1,2,3,4?

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  • June 5, 2014 at 4:32 pm #174313
    hiten
    Member
    • Topics: 4
    • Replies: 1
    • ☆

    If they are about ABC and to do a calc will this be in Q2,3,4 mainly?

    If so is being able to do a basic ABC calc sufficient?

    June 5, 2014 at 4:44 pm #174321
    Ken Garrett
    Keymaster
    • Topics: 10
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    I would think it is more likely in Q1. Wherever it might come up, all that would be needed is a basic calculation.

    June 5, 2014 at 5:09 pm #174338
    hiten
    Member
    • Topics: 4
    • Replies: 1
    • ☆

    Perfect. So i know to.. identify the drivers.. get the total no of drivers for each activity..

    Then get a cost per drive value and apply to the no of activities each product undertakes to get a cost for each product based on activity usage of each activity..

    Any thing else?

    Thanks

    June 6, 2014 at 3:06 pm #174651
    Ken Garrett
    Keymaster
    • Topics: 10
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    • ☆☆☆☆☆

    That’s it, but be able to explain the advantages of ABC: better understanding of costs, profits and strategies.

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