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ACC561 / ACC 561 (VERSION 4) / Week 3 DQ 1 Activity Based Costing

ACC561 / ACC 561 (VERSION 4) / Week 3 DQ 1 Activity Based Costing

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Week 3 DQ 1 Activity Based Costing


What are the differences between a traditional cost accounting system and an ABC cost accounting system? ABC systems are always more accurate than traditional accounting systems. Do you agree with this statement or not. Explain.

Week 3 DQ 1 Activity Based Costing


What are the differences between a traditional cost accounting system and an ABC cost accounting system? ABC systems are always more accurate than traditional accounting systems. Do you agree with this statement or not. Explain.

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Week 3 DQ 1 Activity Based Costing

What are the differences between a traditional cost accounting system and an ABC cost accounting system? ABC systems are always more accurate than traditional accounting systems. Do you agree with this statement or not. Explain.

I believe it is safer to say ABC systems are getting more accurate. services or product which causes the action.Activity-Based Costing requires the sum of expenses for each action in the organization and will allocate the action an expense to the item. not ALWAYS. And ABC concentrates on indirect expenses. . The services would include material as well as labor. however. Where conventional cost accounting systems assign expenses depending on measures at a single volume and are restricted to complying with fiscal reporting requirements. When direct labor is substituted with technology. Assessing the action and cost drivers and their impacts on the expense of making the item or supplying the service is a significant factor of ABC. Conventional cost accounting measures expense of services and products. since indirect expenses are substantial.

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