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Activity-Based Costing - PDF

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Added on  2021-05-31

Activity-Based Costing - PDF

   Added on 2021-05-31

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RUNNING HEAD: MANAGERIAL ACCOUNTINGACTIVITY-BASED COSTING
Activity-Based Costing - PDF_1
Managerial accounting1ContentsIntroduction.................................................................................................................................................2Perth City Council.......................................................................................................................................2Activity Based Costing................................................................................................................................2Functional area of Perth City Council.........................................................................................................3Identification of Activities...........................................................................................................................3Setting up Cost pools...................................................................................................................................4Determination of cost drivers......................................................................................................................6Conclusion...................................................................................................................................................7References...................................................................................................................................................8
Activity-Based Costing - PDF_2
Managerial accounting2Introduction This report contains a brief analysis of the functional area of Perth city council and its costing. It covers the concept of Activity Based costing and its key points. The report also concentrates on the activities performed by the functional area along with the identification of cost pools and costdrivers. In the later part of the report, the importance of ABC approach is also explained along with the conclusion. Perth City Council The city of Perth is a local government body which is now known as Perth City Council. The council was suspended on 2 March 2018 and was administered by three Commissioners, who were appointed by Government of Western Australia. As per the history of council it was legislative and administrative functions consisting of town planning, control and supply water and lighting facilities, looking after of city parks and the buildings. It also included the construction of buildings. All such are the functions of city council of Perth. However, the new city council still faces some financial issues but due to influx of convicts, many works are been done easily (City of Perth. 2018).Currently, the field of local government has widely spread, especially in community welfare. Themain source of Council’s income is from the rates which is a tax on property. Other funds are arranged from Commonwealth Government in terms of grants and from State Government in form of loans (City of Perth. 2018).Activity Based CostingIt is a type of costing system which is based on activities that include any event or a task done with a specific goal. Activities under ABC are considered as cost objects and then its cost drivers
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