Page 5 - Manac Costing Test 1 class slides - 3. Activity-based Costing (ABC)
P. 5
COSTING
Objectives
• Describe the differences between activity-based and
traditional costing systems;
• Identify environments that are favourable for the
implementation of an ABC system.
• Explain why traditional costing systems can provide
misleading information for decision-making.
• Identify and explain each of the four stages involved in
designing ABC systems.
• Apply an activity-based costing approach to costing
information.
5
