Activity-Based Costing Systems Homework Help

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Activity-Based Costing Systems Homework Help for Achieving Desired Grades in Academics

Activity-based costing system is a method used in accounting. This helps in identifying certain tasks or activities which are done by a firm and then indirect costs are assigned to products or goods. An Activity-Based Costing systems homework help from myhomeworkhelp.com will paint a clear picture for a student to understand a relationship between activities, cost, and products. It then attaches indirect cost to goods produces.

All costs are difficult to assign through this method. For example, it is difficult to assign indirect costs like salaries of office staff is hard to be attached to any one particular produced goods. This is the main reason for it being used mainly in the manufacturing sector of a company.

Activity Based Costing System Explained in Detail

This methodology of cost accounting is based purely on activities or tasks. Activity or task means in an event some specific work with a particular goal of designing of a product, getting machines for the purpose of production, distribution of finished products, etc. Through Activity-Based costing systems assignment help, one will cover more grounds on this topic along with various types of examples. Since these tasks deplete overhead resources, these are considered as cost objects.

An activity driver can also be called cost driver, and it is used for referring to the allocation base. For example, cost or activity drivers includes power consumed, maintenance requests, machine setups, quality inspection, production or purchase orders.

Categories of Activity Measures

There are mainly two types of activity measures:

  • Transaction drivers
  • Duration drivers

In transaction drivers counting the number of times, an activity takes place is involved whereas in the duration drivers the time is measured to see how much time is needed for a task to be finished. To know about it more, you can ask our Activity-Based costing systems homework help experts.

Traditionally measurement of cost depends on things like hours of direct labour or machines to know cost of goods. But this system categorizes five levels which are not related to the produced number of units. Some levels are unit level task, batch level task, customer lever task, etc.

Enhancing the Costing Way

Through Activity-Based costing systems assignment help, one can understand how it helps in improving costing process.

  • First and foremost, it helps in expanding number of resources which will help to gather overhead costs
  • New bases are created to assign overhead cost
  • Lastly, several indirect costs’ nature is altered like depreciation, which can be traced to certain activities through this accounting process.

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