2024 Is Activity-Based Costing the Right Tool for Your Organization?

Overview

This session provides a refresher regarding the fundamentals of activity-based costing (ABC). We will examine theoretical concepts before exploring practical possibilities for implementing ABC. A major focus of the course will be factors to consider when determining whether this managerial accounting tool is an appropriate resource for an organization.

Highlights

• ABC versus traditional costing
• First-stage allocation
• Determining predetermined overhead rates
• Second-stage allocation
• Activity-based reporting

Prerequisites

Basic working knowledge of financial statements and business processes

Designed For

Accountants who have not recently considered ABC but want to revisit the cost-benefit prospects of ABC for potential utilization for their clients or their employing organization

Objectives

• Revisit the fundamental underpinnings of ABC
• Understand what types of business entities may benefit from ABC
• Appreciate potential benefits of ABC
• Recognize limitations of ABC

Preparation

None