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ACTIVITY -BASED-COSTING Imlementation 1. What are the five steps required to implement Activity-Based-costing (ABC)?

ACTIVITY -BASED-COSTING Imlementation

1. What are the five steps required to implement Activity-Based-costing (ABC)?

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Answer #1

Even a cursory review of concepts of ABC will help you appreciate that several steps must be taken for a successful implementation

Following are steps must follow

1.Study process and cost

2. Identify Activities as follows

A.unit levels activity

B.Batch levels activity

C.production levrle activity

D.customer levels activity

E. Other level activity

3. Identify Traceable costs

4. Assign remaining costs to activities

5. Determine pre activity allocation rates

6. Apply costs to object

I'm just giving steps required with brief description,for detailed go through the same steps fully

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