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  • ABC Vs Traditional

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    Suvro Avro
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    Non-manufacturing as well as manufacturing costs may be assigned to products only on cause and effect basis. Products are only charged for the cost of the capacity that use. Need not to follow GAAP Traditional Only manufacturing costs are assigned to products.

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    ABC vs Traditional

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    Non-manufacturing as well as manufacturing costs may be assigned to products only on cause and effect basis. Products are only charged for the cost of the capacity that use. Need not to follow GAAP Traditional Only manufacturing costs are assigned to products.

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    Attribution Non-Commercial (BY-NC)
    Téléchargez comme DOCX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    9 vues1 page

    ABC Vs Traditional

    Transféré par

    Suvro Avro
    Non-manufacturing as well as manufacturing costs may be assigned to products only on cause and effect basis. Products are only charged for the cost of the capacity that use. Need not to follow GAAP Traditional Only manufacturing costs are assigned to products.

    Droits d'auteur :

    Attribution Non-Commercial (BY-NC)
    Téléchargez comme DOCX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 1

    Difference between ABC and Traditional Costing

    ABC Non-manufacturing as well as manufacturing costs may be assigned to products only on cause and effect basis. Some manufacturing costs may be excluded from products. Products are only charged for the cost of the capacity that use. Some of these types of costs are assigned to products according to activities. Need not to follow GAAP

    Traditional Only manufacturing costs are assigned to products. All manufacturing costs are assigned to products even that are not caused by products. In traditional system the idle on unused capacity are assigned to products. Selling and administrative expenses are treated as period expenses and are not assigned to products. Need to follow GAAP.

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