Implementing ABC at Plastim Homework Help

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Implementing activity-based costing (ABC) system at Plastim consists of mainly seven steps. But before we go on to the steps we will learn in brief about Plastim Corporation. Plastim basically builds lenses for taillights of vehicles. They make basically two types of lenses for Giovanni Motors; one is complex lens which is CL5 and simple lens called S3. Implementing ABC at Plastim assignment help experts explain it with proper examples.

Plastim Corporation’s Processes

The process of this corporation is divided into three categories. These three categories are very important for everyone who wants to have a clear concept about this and write assignments or homework without needing much help. Implementing ABC at Plastim assignment help for more information on the topic. The three processes are:

  • The design of the goods. First and foremost, the design is kept ready so that it can be sent to the manufacturing part of the company
  • In the second part, the lenses are manufactured so that it can be shipped and distributed
  • And the last part is the distribution of these lenses to potential customers.

Costing of Product at Plastim

Plastimal lots all the amount to its goods as this helps in guiding the decisions in cost management and pricing. Since this is simple and easy, it efficiently traces direct cost of labour and direct materials to goods. In the chain of value, all other costs are assigned to goods using one overhead rate. Implementing ABC at Plastim homework help understand product costing more.

Implementation of ABC at Plastim

As it is said in the beginning implementation takes places in seven different steps. And in brief, will be described below. Implementing ABC at Plastim homework help describes the seven steps in details along with examples for a better understanding.

  • Step 1- Identifying goods which are chosen cost things
  • Step 2- Figuring out direct cost of goods
  • Step 3- Picking the tasks and bases of cost allocation for finding indirect costs of goods
  • Step 4- Identifying indirect cost related to each individual base of cost allocation
  • Step 5- Figuring out per unit rate of each base of allocation
  • Step 6- Figuring out indirect cost of assigned to goods
  • Step 7- Computing total cost of product by adding both indirect and direct cost assigned to goods

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