17 17 Module Three Discussion (Initial post due April 4th) For this Module\'s di

Question

17 17 Module Three Discussion (Initial post due April 4th) For this Module's discussion, we will focus on the importance of Activity Based Accounting. e-Activity: The attached article entitled "ACTIVITY BASED COSTING - ABC" APA Citation: Kapi?, J. (2014). ACTIVITY BASED COSTING ABC. Business Consultant / Poslovni Konsultant, 6(32), 9-16. is for your use in this discussion. Now, think back to last week's discussion on costing approaches (Process, Job and Activity-Based). Based on your increased knowledge. Provide a minimum of 75-100 word response discussing "Which approach is the most appropriate and why based on the costing systems and details in the case"

Explanation / Answer

Job costing is used where each product is unique, cost is identified based on jobs performed on the product.

Process costing is used where products are homogeneous, processes are identified and costs are assigned based on each process.

Activity based costing aims at a deeper dive, suitable in a complex environment, used mainly to allocate overheads/reduction in expenses based on activities.

As per the explanations above it is clear that no one method is better, rather it depends upon the need of the business which costing method suits them best.

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