Question

Does your company/organization employ an activity-based cost system (ABC), or something similar? Do you identify the activities needed to produce your products or services, and then assign costs to them for pricing or other purposes? Have you identified cost pools, with a cost driver assigned to each cost pool? Cost pools could be departments within your organization or particular process or steps in the production of a good or service. Have you adjusted the cost pools or cost drivers recently? Do you use a combination of unit level, batch level, product level, and organization level cost drivers?

Answer 1

Does your company/organization employ an activity-based cost system (ABC), or something similar?

Yes, our company shifted from traditional costing method to ABC costing few years ago owing to increased complications and wrong pricing structures of the various products we manufactured

Do you identify the activities needed to produce your products or services, and then assign costs to them for pricing or other purposes?

Yes, since our company manufactures many products, we first identify different activities and than accordingly assign costs

Have you identified cost pools, with a cost driver assigned to each cost pool? Cost pools could be departments within your organization or particular process or steps in the production of a good or service.

Yes. our cost pools are different steps in the production of a goods or services

Have you adjusted the cost pools or cost drivers recently? Do you use a combination of unit level, batch level, product level, and organization level cost drivers?

Yes