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Systems Design: Activity Based Costing

Systems Design: Activity Based Costing

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Categories:Types, School Work
Published by: ice on Nov 16, 2009
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01/15/2013

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 McGraw-Hill /Irwin
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 4
Systems Design:Activity Based Costing
 
3-2
Learning Objective 1
Understand the basicapproach in activity-basedcosting and how it differsfrom conventional costing.
 
3-3
When cost systems were developed in the 1800s,the emphasis was on simplicity because:1. Cost and activity data had to be collected byhand and all calculations were done with paper and pencil.2. Most companies produced a limited variety of similar products, so there was little differencein the overhead costs consumed by eachproduct.
 
When cost systems were developed in the 1800s,the emphasis was on simplicity because:1. Cost and activity data had to be collected byhand and all calculations were done with paper and pencil.2. Most companies produced a limited variety of similar products, so there was little differencein the overhead costs consumed by eachproduct.
Assigning Overhead Costs to Products

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