WHAT IS ABCs Its Activities Based Costing and applies direct

WHAT IS ABCs? Its Activities Based Costing and applies directly to how we apply/allocate our manufacturing overhead. So now get into it: a.) How is ABCs different than traditional costing/manufacturing overhead costing b.) How does ABC\'s work, in doing the calculations and applications c.) And why only relevant when dealing with a company making multiple products yet using the same common areas and materials/labor/overhead....

Solution

ABC is activity based costing. It is costing technique which is based activity performed. In this method overheads are allocated on the activity performed by each department.