Page 33 - PM Integrated Workbook 2018-19
P. 33

Advanced Costing Methods





                           ABC vs. traditional methods





               2.1 Traditional costing


                              Service               Production                            Product
                            Department             Departments                             Lines

                                      Stage 1                           Stage 2














                      Assigning costs using                                          Absorbing costs

                       measures of service
                                                                                   using a measure of
                              usage                                                      volume
































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