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Advantage of AbC costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Advantage of AbC costing

  • This topic has 1 reply, 2 voices, and was last updated 3 months ago by John Moffat.
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    Posts
  • March 12, 2022 at 7:09 pm #651182
    Anonymous11
    • Topics: 12
    • Replies: 10
    • ☆

    All overhead costs will be accurately linked with a measurable cost driver which will facilitate the control of all overhead costs.

    Please explain this statement

    March 13, 2022 at 8:11 am #651205
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49628
    • ☆☆☆☆☆

    If we know what it is that is causing a particular overhead to occur then we are in a better position to be able to control what is spent.

    I do give examples of this in my free lectures on ABC. Have you watched the lectures? 🙂

    The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.

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