This session provides a refresher regarding the fundamentals of activity-based costing (ABC). We will examine theoretical concepts before exploring practical possibilities for implementing ABC. A major focus of the course will be factors to consider when determining whether this managerial accounting tool is an appropriate resource for an organization.
Learning Objectives
Revisit the fundamental underpinnings of ABC Understand what types of business entities may benefit from ABC Appreciate potential benefits of ABC Recognize limitations of ABC
Major Topics
ABC versus traditional costing First-stage allocation Determining predetermined overhead rates Second-stage allocation Activity-based reporting Activity-based management
