Information Provided by ABC System | Cost Accounting

In this article we will discuss about the relevant cost information provided by activity based costing system for analytical approaches. The activity-based analytical approaches to a cost reduction programme include: (1) Activity mapping, (2) Value-chain analysis, and (3) Analysis of core/support/diversion­ary activities. The successful implementation of these approaches needs micro cost infor­mation. The traditional cost systems based on over simplistic [...]