Activity Based Costing Advantages and Disadvantages

Activity Based Costing Advantages and Disadvantages

    What Is Activity Based Costing?

      Activity based costing (ABC) is a managerial accounting system that estimates the cost of products and services by assigning overhead costs to direct costs. This costing method assigns the cost of each activity in an organization to all products and services according to the actual consumption of the activity resource by the product or service. Read more

Manitoba Accountants – Pricing Strategies For Your Business

Manitoba Accountants - Pricing Strategies For Your Business

One of the most important business decisions that can be, and often has to be, made is one regarding the pricing of a particular product or service, since this is what would differentiate a brand from competition. Here are a few tips regarding the various pricing strategies used by Manitoba accountants to give businesses a distinctive edge in the present business scenario.

High pricing strategies

These are basically of two types:

Creaming – This refers to selling a product at a higher price and making sufficient profit before new players come into the picture. Read more

Typical Examples of Manufacturing Overhead Costs

Typical Examples of Manufacturing Overhead Costs

    Most examples of manufacturing overhead costs are known by various names, such as indirect manufacturing cost, factory burden, and factory overhead. They include all costs that go toward converting raw materials into a finished product, but do not include direct material or direct labor.

    Examples

    In essence, factory overhead costs arent directly incurred when producing a product but nonetheless have a direct impact on production costs, the value of the product, and by extension, how much profit is left after all expenses are covered. Read more