Activity Based Costing |ABC| With Solved Sample Question (#Mgt. #Accounting/#Performance #Mgt.)

Traditionally, overhead costs are absorbed or apportioned using the overhead absorption rate based on either direct labour hours or machine hours; sometimes, the production unit. However, modern organisation overhead costs contain a minimum labour cost; hence, apportioning the overhead cost on the basis of labour hours is not prudent. Large overhead cost are created by activities in the organisation and these costs should be apportioned based on the activities that create them. This concept led to the introduction of ABC by Kaplan and Norton. This video contains all the concepts of ABC and a solved practical question. Question Link: https://drive.google.com/file/d/1NSHb... Channle link:    / @ronasacademy   Still! RONAS: Comprehending the Complications! 00:00 Introduction 02:11 Traditional O.A.R. 11:41 ABC Intro 20:13 Steps in ABC 25:33 Solved Practical Question