Activity Based Costing
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In activity-based costing, some overhead costs are difficult to assign to products or customers, for example the higher management people's salary.
Activity Based Costing or abc is a cost accounting methodology that assigns costs to cost objects (products, functions, projects) based on their use of resources. It attempts to precisely allocate overhead based on the real factors that create costs. Because of the benefits of the method, the market for Activity-based costing software enjoys a high growth rate.
The fuzzy activity based costing is a methodology for handling uncertainty and risk management in activity based costing systems Using an activity-based costing system is guide to strategic decision making. Everyone recognizes the benefits of activity-based costing, however, some companies used method did not achieve the true potential of activity-based costing. |
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