Absorption and Activity-based Costing
- Direct and indirect costs
- Absorption costing
- Calculating a blanket rate
- Over and under recovery
- Calculating a department rate to fully cost the product
- Activity-based costing
- Those who wish to understand the implications of decisions made across a range of managementaccounting issues.
- Those who wish to develop the ability to analyse, interpret, and question the accounting information they may encounter in a business context.
- Those who wish to acquire a sound appreciation of accounting and finance in order to communicate and succeed in the business world.
- Non-accounting staff who desire a practical introduction to the fundamentals of management accounting.
Upon completion of this course, you will be able to understand:
- Why overheads need to be included whencosting products.
- How to calculate a simple ‘blanket’ overhead rate.
- How to apply absorption costing methods to fully cost out a range of products.
- The limitations of traditional costing methods.
- How to calculate a simply activity-based cost.