Activity-Based Costing
A business can find itself in severe financial difficulties if it is making decisions based on incorrect overhead allocations. This has become more of a problem since overhead has become such a large proportion of total costs. Activity-Based Costing
provides the solution by clearly stating a methodology for assigning overhead costs, and the circumstances under which it is most useful. The course also describes every type of overhead cost and how mis-allocations can occur. In addition, it gives practical advice for setting the scope of an activity-based costing project and improving the odds of project success.
Format
PDF Course
Level
Overview
Duration
3 Hours
Course Information
Author: Steven Bragg
Course number: AC1130
Learning Objectives
- Recognize the differences between direct costs and overhead costs.
- Specify how overhead can be mis-allocated in different operating environments.
- Describe the allocation problems associated with a single allocation base.
- Describe the processing steps used in activity-based costing.
- Specify the differences between primary and secondary cost pools.
- Identify instances in which the refresh rate for activity drivers can be delayed.
- Describe the different types of activity drivers that can be found within a business.
- Specify the contents of a bill of activities.
- Recognize the allocation treatment for the different types of administrative costs.
- Identify the situations in which additional cost pools and activity drivers should be added.
- Specify the advantages and disadvantages of activity-based costing.
- Describe the circumstances under which activity-based costing can be most beneficial.
Level: Overview
Instructional Method: QAS Self-Study
NASBA Category: Accounting
Prerequisites: None
Advance Preparation: None
Latest Review Date: January 2025
Program Registration Requirements: Click on the Enroll button to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.
Program Refund Policy: For more information regarding administrative policies concerning complaints, refunds, and other matters, see our policies page.
