Cost accounting is one of the main tasks that help to allocate the cost of the products where each consists of their own merits and demerits. This is one of the vital processes that help to decide the selling price and it’s also helps to make the cost that need to decide. It also helps to decide the cost of the product after doing complete investigation and research. We also provide the best and quality assistance to our students through Activity-Based accounting assignment writing help.

Activity-Based Costing: This is mainly referred according to the particular that helps to find the cost on the basis of the advance format and methods. It mainly provides the best and advance techniques to decide the cost of the products for market.  Activity based costing mainly investigates the complete market tendencies, after that they make the changes and finalized the cost. It is mainly designed on the basis of the resources usage so that we get the complete and perfect amount according to the product quality. Here we are trying to write the entire steps that we will use in the costing like:

  • Determine the key activities.
  • Determine a cost driven for every key activity
  • Then calculate the cost of each key activity group
  • Calculate the cost that mainly contains the cost of allocation rate for each activity by dividing activity cost into allocation base
  • Allocates costs to each cost objective via allocation rates. If you need additional information about the concept than you can directly collect the Activity-Based accounting assignment writing help directly from our website.

Absorption Costing: This is traditional based costing system that helps to finalize the price of the product before presenting into market. This mainly uses the old or you can say that traditional guidelines of the costing to get the perfect result. This mainly includes the labor cost, variable cost, material etc. This is based on the expenditure which you have used to get the perfect outcome. You can easily get the best result after doing the entire investigation and you can easily get the appropriate result at the end.

Absorption Costing VS Activity Based Costing

The main and core difference absorption costing and activity-based costing lies with the manner indirect costs are allocated. The main allocation of direct cost remains the same across the two techniques. Activity based costing s mainly preferred by many managers due the nature and relevance of information provided, however it is time consuming and costly to use this method. Both the types are completely based on the new format and we get the complete result according to the guidelines. You can get the perfect result by using these two methods so that we can easily know the facts which we are using in this costing. In this IRA of technology, we get the best an appropriate ate on the basis of the new methods because this is very fast as well as an accurate.

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