Activity Based Costing Management

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Activity BasedCosting / Management

• Chapter 6
• Managerial Accounting
• Concepts and Empirical Evidence

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Cost Flow for ABC System
W/P
P1
P2
Direct Costs
3
Product Costs under Non-ABC System
4
Product Costs under an ABC System
5
Product Costs under an ABC System
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Product Costs under an ABC System
(15 200) (2,000 5) (120 600) /
2,000 bicycles 42.50
(5 200) (18,000 5) (40 600) /
18,000 bicycles 6.39
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Product Costs under an ABC System