This document discusses the differences between Activity Based Costing and Traditional Based Costing methods and their impact on cost allocation. It also explores the reasons behind changes in production costs and how the cost of products can be overstated.

ACT202 ASSIGNMENT DATA - SEMESTER 1 2019

Assignment information for ACT202 - MANAGEMENT ACCOUNTING course in Semester 1 2019

Discover the distinctions between Activity Based Costing and Traditional Based Costing and their effects on cost allocation, including potential product cost overstatements and reasons for production cost fluctuations.

Activity Based Costing and Traditional Based Costing

This document provides information about resource cost categories and resource drivers. It includes details about wages, building costs, depreciation, consumables, energy, and other costs. The document also lists the activities and resource drivers used in baking and packing. The cost categories and resource drivers consumed by activity centers are also mentioned. The document concludes with a comparison of absorption costing and activity-based costing.

Resource Cost Categories and Resource Drivers

This report compares Activity Based Costing and Traditional/Absorption Costing. It discusses the allocation of indirect costs and the impact on product cost. It also explores the advantages and disadvantages of Absorption Costing and its use for inventory valuation. Additionally, it highlights the benefits of Activity Based Costing for decision making and budgeting. 

Activity Based Costing vs Traditional/Absorption Costing

This document compares Absorption Costing and Activity Based Costing techniques for allocating overhead costs. It includes schedules and lists of activities and resource drivers used in the production process. The analysis shows a significant difference in the allocation of overhead costs between the two techniques. The document also discusses the reasons for changes in the cost of the product and concludes that both products' costs are overstated. It provides insights on how to allocate overhead costs using Activity Based Costing.

Activity Based Costing and Traditional Based Costing

End of preview

Resource Cost Categories and Resource Drivers

Activity Based Costing vs Traditional/Absorption Costing

Comparison of Absorption Costing and Activity Based Costing

Activity Based Costing and Traditional Based Costing

End of preview

Resource Cost Categories and Resource Driverslg...

Activity Based Costing vs Traditional/Absorption Costinglg...

Comparison of Absorption Costing and Activity Based Costinglg...

Resource Cost Categories and Resource Drivers

Activity Based Costing vs Traditional/Absorption Costing

Comparison of Absorption Costing and Activity Based Costing