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Introduction to the topic
When talking about activity based costing, let us first see what this subject is all about. It can be defined as a methodology in an organization through which it identifies each activity and assigns cost to each activity based on the resources that are used in manufacturing and consumption of goods and services. In other words it can also be said to be an approach to monitoring and costing of each activity and its final output.
It is not necessary that this subject may seem to be easy for each and every student because the overall topic does not end up in just two lines. It has various applications, methodology, limitations, advantages and aims. To study about all this a student may definitely need activity based costing assignment help.
Activity based costing is basically that aspect of Accounting which systematically organizes, the activities performed in every firm. What it also involves is finding out the pattern of the costs being incurred to every activity to make an assumption of the probable costs of the future. This way, the Activity based costing comes to the forefront.
Activity based costing might give out the idea of being simple but it is anything but. This is because truly identifying the pattern of costing is in itself a difficult task and then comes the aspect of it being a studied assumption. For students who need to deal with Activity based costing, activity based costing homework help is sure to be of great help especially if it is from us.
Detailed information on the topic
As said earlier there are several aims of activity based costing. Few of them are discussed below for better understanding of students.
- It tries to identify and remove those goods and services that are unprofitable and are hindrance to the resources and overall organization.
- It identifies better and more feasible options that are available with less utilization of resources to produce same amount of goods and services.
- It aims in better decision making of the company by reducing the price of the product but at the same time improving its quality.
While talking about the methodology, it can be said that it basically segregates the overall cost into fixed cost, variable cost and overhead cost for the better understanding and decision making within an organization. However, there also exist some limitations of activity based costing which cannot be ignored as they seem to be very important:
- Tracing of costs – some of the overhead cost cannot be determined based on individual activity. Therefore such costs are divided among the activity based on the contribution made in organization.
- Public sector usage – when used in the public sector organization, these reports do not provide with any justification regarding the success of the methodology. All these terms seem to be complicated, isn’t it? Try taking activity based costing homework help.
Importance of Activity Based costing
Activity Based costing is extremely important especially in the industries which manufacture products. This is because in such industries, calculating the probable cost is extremely important as it is this calculation which will be kept aside as the manufacturing costs. To understand this and more about Activity Based costing, you must seek activity based costing assignment help from us.
Businesses run on assumptions and analysis. If you are an aspiring Entrepreneur and wish to know how the costing aspect of business works, you must learn to apply Activity Based Costing. For that to happen, you must be thorough with the chapter and seek activity based costing homework help and activity based costing assignment help whenever necessary.
Problems in Activity Based costing
As useful as the activity based costing might be, it does have its own set of problems. Some of them are:
- Students always seem to have trouble in accepting the idea of a concept where assumption is the key, being given as much importance as it is given. This leads to them being confused or having an inner debate most of the time. At this point, activity based costing homework help from us can be the only help.
- Students are again confused because they are required to identify situations and apply a probable cost incurred. The accuracy of it is unsure and they find it very difficult to make the correct assumptions which can affect the company very badly too.
- The Activity based costing calls for you to detect the pattern which will further help you with making your assumption. This pattern detection is seen by students as their biggest problem.
- In cost production, Activity based costing seems to have a great role to play. Students who are more often than not unclear with their concepts fail to apply them in practical life too. Activity based costing assignment help from us will help you with your assignments but you have to seek it in the first place.
- Homework and assignments are nothing but additional burdens when you’re already struggling with the understanding of concepts. This is why activity based costing homework help and activity based costing assignment help from us is advisable.
These problems might seem to be impossible to solve but are in reality only obstacles that curiosity put in your path. All you need to do is come to us and seek activity based costing homework help to actually overcome all these problems and learn with newfound enthusiasm.
After getting the detailed information regarding the topic of activity based accounting, if you think it is a manageable subject then in that case we can only hope for your bright future. In other case you always have My Homework help team with you.
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