Enter your keyword

What Is Activity-Based Costing and How to Solve Them?

Exams are about to arrive in no time, and you’re worried about the preparation. There’s so much to prepare for the upcoming exams, but daily assignments keep you so occupied that you’re left with no time to give to the much-needed self-study in the hour. To you, others may seem to be completely ignorant of your situation but believe us…in case you didn’t know; there are services such as activity-based costing homework answers that helps worldwide students with their homework.

Such services, as it is the aim, they are started with, not only understand the problems of students but also help them in sorting out the same. If one opts for such services, he will be astounded with the extent of benefits such services provide.

How do these services help the students?

The answer to the question lies in the names of such services themselves. They have names that end with the phrases as ‘homework help’ or ‘assignment help’, which amply encapsulate functional area and thus their helpfulness to a student. Homework or assignments delivered by such services are worked out by a team of experts, who are very experienced about the subject and can write a freshly styled assignment each time, thus keeping the work plagiarism free.

Not only the assignments are plagiarism free, but also bear a standard quality, that may otherwise be lacking if done by a novice student. Therefore, students who avail themselves of such services as activity based costing homework help receive immense benefits by getting their homework done as well as receiving an experience of how to write such assignments if they regularly analyze those written by experts. We’re providing you with a brief overview below to give you an idea of how a refined piece of information must look like.

What does the term activity based costing imply?

The term ‘activity based costing’ on splitting into its components, evidently seems to contain three words, namely, activity, based, and costing. Costing can be understood as the procedure of attributing a cost to any product of a company. The words ‘activity’ and ‘based’ simultaneously imply that here, the costing is done on the basis of the activities or chain of procedures through which the product has undergone to attain the form it is in now.

 Activity based costing involves the identification of each activity involved in the whole process of manufacture and assignment of a cost to it on the basis of resources used and consumption of goods or services in it.

How is it different from traditional costing?

Besides giving sufficient information about the main concept, such services as activity based costing homework answers give you an insight into comparison of the same with typical costing. Activity based costing is different from traditional procedures in that it involves the costing of products based on the complexity of the procedures involved in manufacturing and not merely on the basis of labour hour rate or machine hour rate that might often lead to wrong decisions regarding the costs of products.

If done on the basis of labour hour rate or machine hour rate, as is done in case of traditional costing, costing may turn out to be faulty because in that case, products manufactured in high volumes will be attributed a higher price than those manufactured in lower volumes. This difference arises because of comparatively larger proportion of labour and machines required to manufacture the same product in a large quantity.

However, if done on the above-mentioned basis, the cost attributed to the products will be an illegitimate one. This is where activity based costing is advantageous as it assigns the costs to each unit, thus precisely, and not merely to the proportion of the manufactured goods, which is faulty and distorted otherwise. In-depth information on this comparison can be made available to oneself by placing an order to services such as activity-based costing homework answers.

Activity based costing homework answers also help student in understanding basic concepts

Not only do such services help student in homework, but also in understanding the concepts in their course by providing them a well-structured, arranged and properly sequenced piece of information about the topic. A well-structured informative assignment may be consisting of subheads like definition of activity based costing by different standard organizations and universities, followed by the applications, significance and drawbacks of the procedure respectively.

We’ve already dealt with the definition here. Let us move on to the applications, significance and drawbacks section. General applications of activity based costing can be summarised briefly into the following bullets:-

  • It aims to recognize the unprofitable goods and services being produced in the company. This recognition leads to removal of such products, because they may be posing an obstruction to the development of organisation as they require regular investment and produce no considerable output.
  • It also tries to sort out the best possible options that may be available with lesser investment to produce an equal amount of goods or services.
  • As this methodology helps in better understanding of the products and services manufactured by an organization, it eventually helps in good decision making in favour of the organization.

Activity based costing also has some drawbacks

 Although activity-based costing is probably the best among its kind in the present, still it has some drawbacks, which are mentioned below. Services such as activity-based costing homework answers may prove useful if one wants a more detailed view of these drawbacks.

  • Set-up and maintenance of an activity based costing or ABC system carries along a lot of expenses and consumption of a large proportion of time. Analysing each activity’s individual components takes a lot of time and usage of various goods and services for performing tasks like collection, measurement and entry of data. Requirement of assistance of an ABC consultant and usage of software may further add to expenses.
  • Often, data produced by activity based costing system may undergo misinterpretations, as it mentions activities such as product margins, that do not match the accounting standards and are not relevant for external reporting.

 Understanding the concepts of business is a tough task and novice students face a lot of difficulty in doing assignments based on those concepts. Often, they fail to produce desirable assignments of good quality that leads to a low score in academics and thus, affects their grades badly.

Services such as activity-based costing homework answers can amaze you with the results of subscription. Not only your grades will increase in the subject, but also you will receive help to clearly understand the concept, which you may imbibe and retain for a long time in your mind. All one has to do is decide rightly.

I'm from Michigan, USA and working as Tutor at My Homework Help Since 2012. The teaching job is very challenging job, but I love to do. I'm helping students with their homework. If you need homework assistance, feel free to contact me!

Related Posts

live chat support software