![]() ![]() ![]() Some pets are easier to wash than others though. If we did it on a straight per unit basis, that would be £3,000/300 pets = £10 per pet washed. The overhead for the pet washing activity is £3,000 and we will wash 100 each of goldfish, ducks and chickens. Let’s say that as part of our pet business, we clean pets before we give them to our customers. Intensity drivers reflects how hard it is to do something.Ī transaction driver = the number of holes we put in with our hole making machine. The hours or minutes we spend on that activity per unit of each of the products.Ī more complicated driver for more complicated situations. Simply the number of times something is done = e.g the number of holes drilled in each product per unit.Īnother easy one how long we spend doing something. ![]() Introducing Activity Based Costing: Cost Drivers typically fall into one of three categories. It is more complicated to do than the traditional methods. What’s it all about? A technique for allocating overheads to products that is believed to be the most accurate (‘fairest’ way) of doing it as it takes in to account the amount of overhead that each product is ‘responsible’ for. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |