'Acc349 Reflection Summary\r'

'Weekly Summary get by accounting! Another great hebdomad with lots of frequently needed information to grasp. One advantage of Activity-Based Costing dust is it has more accurate command processing overhead time live allotment because there are more price pools, the prices in for each(prenominal) one pool are more similar, and allocation is based on activities that cause overhead be. It is more effective overhead damage control by focusing on processes or activities and focuses on relevant factors by assigning personifys to any be object that is of interest to wariness.Lastly, it allows better worry of activities by helping managers identify the causes of approachs and the activities driving them. The disadvantages of Activity-Based Costing are its cost to implement and maintain rudiment requires management commitment and financial resources and its uncertainty with decisions sojourn and management must interpret ABC data with caution in making managerial decisio ns.Cost drivers are selected based on the casual relation, benefits received and reasonableness or fairness. Most of the cost drivers are relate either to the volume of harvest-festivalion or to the complexity of the production or market process. An overhead rate is calculated for each cost pool using the avocation formula: Costs in act cost pool/base. The base is, of course, the cost driver. Overhead costs are past allocated to each product according to how much of each base the product uses.Activity-based cost allocates overhead to multiple bodily function cost pools and assigns the activity cost pools to products and services by means of cost drivers. In ABC, an activity is any event, action, transaction, or work succession that causes the incurrence of cost in producing a product or providing a service. A cost driver is any factor or activity that has a direct cause-effect affinity with the resources consumed.\r\n'